This is probably not a good habit to get into, but I can do it.

Since all of these repairs appear to have been needed to make it habitable, the IRS is correct in saying they should be lumped with your purchase price, and depreciated over 27.5 years.If a year from now if you remodel a bathroom, then that would be depreciated over 5 years seperate from your original purchase/rehab costs.The loan you obtained on your original rental condo, is attached to that rental property.

Is the property habitable?

@Ben LeybovichNo harm no foul, maybe lesson learned ? 

A little bit about myself for anyone interested:I'm looking to be a buy-and-hold investor while continuing my regular job - I am looking to put money to work and would be potentially interested in doing so as part of someone else's deal; I would consider both SFR and MFR deals.I am an investor in my day job (currently private equity / buyouts, soon to become public equities) so may have some bad habits, or at least industry-specific ones, to break; I generally anticipate being relatively analytical / systematic in looking at dealsMy family held a few properties when I was growing up - I have experience personally doing refurbishing work and secondhand experience with property management activities (this will hopefully help me as contextual information, I don't anticipate taking on an active role in refurb or property management in the near future)Right now, I am trying to educate myself on the process of deal sourcing (MLS, wholesaler buyer lists, etc.) and market data sources; in particular, I would really appreciate any input on good sources for publicly available market-level data in manipulable format such as Excel or .csv as well as input from anyone who uses a systematic deal-screening approach both on their criteria and how they get reliable / quality data into a screening-friendly formatThanks for everything people have already contributed. 

I plan on living in a 2 unit multi-family so I'm not trying to put myself in harms way.

You probably could find something good at Habitat or some such place. 

I assume that as long as I don't require any additional security, there's no harm in simply transferring the deposit from them to me?

For rentals like a duplex you might do better with the sale if you have tenants in them when you go to sell.If the property really needs a lot of work look into getting a 203k loan since you can get a 203k on a house that you are going to live in even if it is not habitable at the time of purchase.

My business habits kicked in so I asked if it was was a good time to talk.