Of course expenses to ensure nothing out of the ordinary but the profit is in appreciation and rent growth.  

The home's value, according to Zillow (I know - Zillow), is approximately $500k but that is over-valued, especially as it is an older home that needs some work to the exterior concrete patios (terraced and sinking).

You also might have depreciation recapture taxed as ordinary income. 

If you are talking capital gains if you sell, it really depends on how long you lived there- from what you've shared, you haven't owned it or lived there long enough to claim it as your primary, so you'd likekly pay ordinary income taxes on the profits. 

The inspector was unable to test for gas leaks.Exterior4)One or more trip hazards were found in sidewalk and/or patio sections due to cracks, settlement and/or heaving.

Tile the top of a patio table, make a kids playhouse (you can always sell it if you don't have kids) and practice laying laminate wood floor in it etc.

If you insist on including utilities with the rent, I recommend you include a clause that says:"Advertised rent rate includes ordinary utility use, up to an amount not to exceed $XXX.

Also, if you are investing for appreciation, a self-directed IRA is not ideal because you will pay ordinary income tax rates on the appreciation instead of lower capital gains rates. 

You can operate a 401K account if you are generating ordinary income(flips, property management, etc).

If you’re flipping it’s not cap gains....it’s ordinary income plus self employment taxes.