Did you investigate the history of heating costs before purchase?

when you purchase a property, there are closing costs on top of the purchase price, and closing costs can be substantial - especially if there are points on the loan. 

Your adjusted cost basis is the purchase price plus capitalized improvements minus depreciation. 

(Sale price - selling costs) -(purchase price+ purchase costs)- renovations = taxable gain. 

But here are ways to reduce capital gains taxes:Deduct expenses (renovation, selling costs) in 2024 to offset gains.Hold for 1+ year to qualify for lower long-term capital gains tax rates.Invest in a Qualified Opportunity Fund (QOF) to defer taxes.Use tax-loss harvesting to offset gains with investment losses.Pushing 2024 deductions to 2025 won’t help much with 2024 capital gains.

I would need to consult tax consultant for this however I expect to reduce my effective costs by ~$1,495/month (based on a 32% tax bracket).2.

I have some cash, but likely not enough to fund a purchase without bank financing, and especially not when factoring extensive rehab costs into the equation (may need to up my knowledge on creative financing to bridge this).

That’s total cost.

If you have an issue, it gets costly quickly. 

I would highly encourage paying a GC to walk deals out the gate, have them give a scope of work so you can see what items costs.