And 0% deduction on expenses related to the live in unit.

Hallway utilities are around $25 a month and tax deductible meaning net cost around $17.50. 

Points will be deducted for deficiencies and remove subjectivity in the inspection process.

I can run the numbers for NOI-depreciation and this holds true, but not all of the operating expenses are deductible (or at least maintenance, vacancy and cap ex aren’t until that money is spent).

Security Deposit: Follow Oregon’s rules—return deposits within 31 days with documented deductions.5.

Do you know if it is possible to have a tax deduction for interest/profits earned on promissory notes/PML?

So, you're not "wrong" in thinking it's complicated.The tax code plays heavily into how certain transactions are categorized and there is some flexibility regarding what we can capitalize versus deduct.

The #1 way real estate investors defer taxes to later dates is with a system called depreciation and bonus depreciation.Depreciation is the act of slowly, over time, deducting the initial expense of an asset against your taxable income.Generally over a 27.5 (residential) or 39 (commercial) yr time frame.So each year you can write off a few percent of the purchase price against your income. 

To determine if the expense should be classified as a capital improvement or a deductible repair, the context of the expense is very important.An example is, if an item of expenditure is part of a general plan of modernization, renovation or rehabilitation to equipment or other business property, it typically must be capitalized even though on its own it would be currently deductible.According to IRS Code, expenses that you must capitalize are those that:Materially increase valueSubstantially prolong useful life (including replacement of deteriorating assets)Adapt the property to a new or different useHowever, you are allowed to deduct expenses and fees for routine maintenance and repairs that help keep the property in efficient operating condition.

Lastly, don’t forget about the tax benefits, you can often deduct mortgage interest, repairs, and other expenses.If you need help navigating any part of the process, from financing future investments to managing your rental, feel free to reach out.