It was gutted and all new tiles, bath tub, toilet bowl installed. 

Add replacing or fixing a toilet, lawn care, sometimes even insurance and it seems to be most costs would be a higher percent the lower the rental amount. 

No kitchen remodel, no bathroom being redone, no stainless appliances-nothing being spent up front where it shows and impresses a new tenant.

You should factor in the loss of use when you are doing the 10k worth of remodeling to the other unit. 

It’s a remodeled house 3/1.

I've done a few real estate deals in the past and have alot of construction/remodeling experience.

For example, a quick "back of the napkin" conceptual estimate (WAG) suggests the following:Appliances (dishwasher, refrigerator, stove, hood):  $3,500Kitchen sink, disposal and faucet:  $500 (material only)Kitchen hardware:  $200 (material only)Kitchen cabinet restoration:  $3,000Kitchen countertop restoration:  $1,500Plank flooring:  $3.50/SF x 2,000 SF = $7,000 (material only)Electrical rehabilitation (including light fixtures):  $4,000Plumbing rehabilitation (including toilets, faucets & shower):  $3,000Bathroom tile (2 baths):  $5,000  New roof:  $10,000New siding:  $6,000Paint (outside):  $4,000Paint (inside):  $5,000Staging: $1,650TOTAL:  $54,350This estimate does not consider any cost associated with building permits or design professionals. 

I made an offer on a foreclosed property that needed everything redone (roof, hvac, windows, kitchen remodel, paint) and they came down a whooping $4,000. 

The remodeled house is up for sale now for two months and is at the price of $209,000.

What are the tax implications for the seller of a seller financed property in which the seller purchased, remodeled and sold it on terms?