By making partial dispositions, you can also avoid subsequent recapture on these items when you go to sell.

Proceed with caution and make sure you create enough room for value loss.My client recently had this issue and I told him only way to take this is if seller repairs it and lowers price significantly for value loss.

Have you ever had a capital loss?

In addition you can use it to collect initial security deposits or to bill the tenant for addition items such as billed back utilities, damages, etc.

Apparently, not only did they sell at a loss, I didn't get any money back at all and they claim I owe them an additional $40,000 for "renovations" despite no work being done to the building at all. 

Contributions for development and remodeling will be capitalized, increasing the property’s basis and reducing taxable gains upon sale, though these costs are not immediately deductible.The LLC Operating Agreement must clearly outline how contributions are recorded and how profits, losses, and expenses will be distributed.

The other benefit to verify is if you have loss protection.

Yes all losses and returns the IRA incurs stay in the IRA until you take a distribution. 

Even if you write a bunch of text into a contract for those items, it probably won't matter much.

Regarding borrow's DTI, Chase thinks that this item is not that important.I wonder will my high DTI impact the loan underwriting?