I agree with Caleb-save money for a down payment and to have money for repairs and maintenance. 

I just bought my first investment property in Chicago, and have been busy doing minor repairs, furnishing it, and getting it ready for rental.

That doesn't give us many options for negotiating contingencies such as repair requests etc.

After repairing and improving the usability of the home, I was able to get it rented out at the top of market.

It sounds like with the repairs needed the home could command a solid rent. 

But he said the prop. management he looked into out there takes a percentage of profits from everything, including repairs.

After Repair Value (based on rehab plans)3.

We had already been planning to do some maintenance and repairs (repave driveway, re-insulate attic, replace two broken faucets, other minor items), but were wondering if, for tax reasons, we are better off waiting until we close on the new home and this is no longer our primary.Can this work count toward tax deductions as preparatory work on rental property, even if it's currently our primary?

Not sure how much you need for the remainder of the repairs.

Unfortunately a lot of the decisions that are being made by PM are just not the right ones (costs of repairs, what to repair vs replace etc) so it ends up being me jumping in to manage them.