Readers are advised to seek professional advice.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Your best bet is to ask for referrals from professionals in the space: realtors, other investors, this forum, FB groups, etc.

Readers should seek professional advice.

I have no investment experience, only stock market and IRA’s, but I hope to learn a lot from professionals on this forum.

You should consult a tax professional for an answer based on your unique situation, this is not tax advise just general information.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The first is that there's no consensus between tax professionals, and the second is that you will not like my personal interpretation.My interpretation is:Until the property is "placed in service" - everything goes into basis.Illustration.You buy a property July 1st.You finish rehab November 1st and put the property on the market.Your tenant moves in January 15th.The property was placed in service November 1st, and it does not matter that the tenant did not move in until the next year.Everything paid between July 1st and November 1st, including interest and utilities, goes into basis.

My lease requires professional carpet cleaning, which would cost more than $500 for a home of that size.Yes, it's reasonable to reduce the cost because she was such a long-term tenant.

To properly evaluate the condition and determine the cost of renovations, always have a professional inspection done before making a purchase.4.