There's other items such as this where it may be helpful to talk to a CPA/EA for a little tax planning, especially since you'll likely get caught up in the passive activity loss limitations if taking bonus on a single rental property as I often see.It's also useful to mention that even if you do the cost seg study (I'm assuming you're doing one to be talking about this), you'll still benefit from accelerated depreciation in the form of shorter useful lives on the assets where you received bonus from.

First when I bought them and "fixed them up" and then 10 years later when I had a little better understanding and started doing things the right way.

Off market and the new the owner used an agent so I reached out to the agent and made an offer How did you finance this deal?

Other than that it's a pretty clean package. 200k down, 720+, 60> ltv owner occupied.  

Here you can get a little cashflow + appreciation + mortgage paydown while other areas are just the former two. 

I would also INSIST that the seller have independent legal representation before I entered into a contract with an owner occupant.  

I've made investments in Chicago, so I understand urban markets a little bit.

That could make financing the rehab a little smoother.3.FHA 203(k): If the rehab costs and scope fit within the FHA guidelines, refinancing into a 203(k) loan could work.

You paid the property owner $40,000 in rent.  

I know a little about the phoenix market and agree it is growing.