The Scorp tax treatment Can eliminate some of it though....after a "reasonable" salary amount (up for debate, but maybe $20-40k/yr) which would be subject to the 15.3%, the Balance of any profits could be taken as Profits subject to only ordinary income tax.

A "Termite Report" in this area of California often refers to a complete home inspection done by the seller, not a "termite treatment."

Does it change the tax treatment? 

Before I could mention the rent increase he states he has cancer and will be starting treatment.

Some may try to rip you off, and you'll need to do your best to ensure that you're getting proper treatment at a reasonable price.Get a bunch of bids, make sure the contractors have any required licenses, ask lots of questions, etc.

What you'd be most concerned with is holding the property long enough to qualify for long-term capital gains treatment. 

I don't even get nicer treatment as someone new to the neighborhood who chose to invest and live within the community.homeowners need to work together.

The buyer had a termite inspection done and the examiner determined there was previous damage so the seller wanted a full termite treatment and repairs.

Not doing so could land you in hot water, especially if other tenants feel that you are giving others special treatment.

No business succeeds long term breaking the law.As far as tax treatment, it is really no different than any other business income.