I am going to renovate the bottom unit, out in glass block windows in the basement and redo the driveway.  

The building is in Arizona, and consists of concrete slab/cinder block construction with a comp shingle roof.  

Some houses within two or three blocks are selling for over 400k but they are newer.

This will likely lead to you being blocked by the Co-op board from purchasing any additional units due to the fact that turning the Co-op into a rental building will devalue everyone else’s units.

I am sitting here at HR Block and they are saying I can no deduct my LLC business expenses from my 2017 W2 income, is this correct or no?

Just up a few blocks from there another crane is putting in a large multifamily unit. 

(Windows, electrical updates, kitchen and bathroom)Recently (within a year) comp houses (3B 2BA) on this block have sold for 155,000 and 160,00.

The property is a 2/1 750 sqft block home.

Congrats man, that's a decent block.

Or, is it back to the old-school way of "beating the block", looking inside every 80s-era for-sale home in this area until we find one that needs enough rehab that we can put in an offer low enough to make money on the flip?