You will report your purchase and improvements when you sell, which will leave you with your gain which is tax exempt for 250K single or 500K married.You don't report anything now because there is no ongoing reason to track the number for tax purposes like there is on a rental where you're actively taking depreciation.

Those super discount deals happen as part of my ongoing involvement in REI, but not something I can count on to build a portfolio.  

And now I have learned, that due diligence on the portal isn't a one time thing--it is ongoing.

Normaly you would capitilize rehab cost but not ongoing maintenance and repairs.

I tell everyone "me and the other village Idiot. don't know any better than to keep on going. lol ." 

Mold in the basement is very bad because it suggest an ongoing problem. 

I am going to sell him one of my rent houses but I am not going to set up any ongoing business situation 

They are only going to try to sell you on going to a more extensive seminar and they use the guru's name to get you there and many think that "guru" will be in attendance when in fact they are not, they are just using their name. 

I plan on going the B&H route to invest.

I have been on some on-going works and have asked the subs that are working there, i have not worked with them yet.