For GAAP, you'd amortize the loan origination fees over the duration of the loan and recognize the expense pro rata each month of the loan term.

Recognize if you choose to be the PM, it is not passive and requires work.  

For example the CRA does not recognize LLC's, and the IRS might not recognize your Canadian entities.

Generally speaking there are 2 main types of loans for investors: “Conventional” and “Portfolio”Conventional - I'll define these as loans that come from Fannie Mae and Freddie Mac (if you recognize those names).

Get multiple bids and recognize an overlay is different than a first time paving of the roads.

I cannot see myself going that route, but understanding the motivations of others, recognizing the duplicitous, and false pretenses, does actually remind, in a sobering way, that the world is not as virtuous as I would like to believe.  

I definitely recognize that the changes of depreciation are VERY slim...which is why I am hesitant.

If the LLC and the property are in separate states, one issue is if you had to go to court, the court wouldn't recognize your LLC's filing since it doesn't exist in that state.Also, remember that CA charges some huge franchise fee, some $700 or $800 annually, which is applied per LLC you form. 

I recognize that things may be different in Louisville, but here in Baltimore (and most other jurisdictions that I am aware of) the past owner's water bill needs to be paid at settlement by the seller in order for your deed to be recorded.Could be a very honest mistake or the result of delays in water bills being updated, but either way it sounds like something the title company that handled your purchase should eat. 

Good luck and congrats on recognizing the value of getting started so early!