If you can hire a contractor to repair the fridge , dish washer and patio you can charge otherwise you have nothing to charge them for. 

Do you know if the k-1 earnings are reported as interest income and taxed as ordinary?

They'll be better off paying the capital gain on the sale of the station and that would limit the ordinary income gain from the development of the other piece.  

Doing a maintenance inspection now will give you a "look-see" as to the condition of the unit and how much work might be needed during the turnover.You need to determine if the garbage disposal and shower drain are not working because of something the tenant did (or failed to do), due to ordinary wear&tear, or failure of the item.

Letting an offer expire is no different than a rejection.Did you have any conditions or contingencies that are out of the ordinary?

Finding a house you like better won't work as an exception :)But you've owned it for over a year so you should pay capital gains rate and not ordinary income.

Hi @Sabrina Savinski,The IRS lets you deduct ordinary and necessary expenses required to manage, conserve, or maintain property that you rent to others.  

Also, there's the Vt Land Gains Tax in addition to ordinary income taxes.Are you applying any of the rent towards the option?

I know a realtor who treats his flips as ordinary income because his CPA told him real estate is his profession. 

In the past, unscrupulous landlord/sellers used executory contracts to their advantage by evicting defaulting tenant/buyers as if they were ordinary tenants subject to ordinary leases.