Your net income includes equity from debt pay-down.

There are many folks, including myself, in this forum that can help and the more info you can provide (mainly numbers on the property), the more we can help you.

For probably $100 you can get many books, including J. 

We have a savings account where we split up into different buckets (from our w2 and passive income) and one bucket is for real estate and when we have enough to acquire another asset we will consider it.I am not a fan of borrowing 100% of the transaction costs including closing costs as it will be extremely difficult to make money many times on those types of deals.

When I received the Construction Agreement they want me to sign, none of this is included.

I am working on my RE license for VA and see some gov contracts where JLL "is the Commonwealth’s contracted real estate broker for current real estate services, including with respect to the acquisition or lease of real property and the disposition of surplus real property." 

The plumber’s report indicates that the leak may have been caused by an overflowing tub or sink upstairs, but the tenant in that bedroom denies any such incident.As a result, I now have substantial expenses for the plumber and restoration company, including drywall repairs, painting, texturing, and reinstalling electricals.

Use a promissory note drafted by an attorney to outline loan terms, including an interest rate that aligns with IRS Applicable Federal Rates to avoid gift tax issues.

How do I proceed from here to include the labor charges as an expense on my taxes?

We don't allow any "deal-making" in the forums, which includes advertising your services or properties, looking for partners, etc.