Use Schedule E to report rental property income and expenses.Rental property doesn't necessarily lead to rental losses, but often does and can shield a fair amount of ordinary income depending on your circumstances.I think most beginning investors can do their own taxes though they may not identify all of the deductible expenses associated with a property.

You mentioned separating the businesses for tax purposes and that would make sense to as a way to clarify which properties are being held out for rent and which are immediately on the market for resale and the ordinary vs. capital tax treatment differences as well as the depreciation differences.

Receiving interest / ordinary income has no tax advantages. 

Also put in some nice recessed interior lighting as well as exterior lighting, both a security and cosmetic improvement.New fence (there was nothing previously)Screen Shot 2017-12-15 at 6.50.20 AMMy new secure, patio sliding door - an earlier security weak pointScreen Shot 2017-12-15 at 6.50.05 AMThe plus side (if there was such a thing) to Harvey is that I was able to get the other two bedrooms rented out as coworkers had become homeless (their apartments had flooded).

I also came from a house I had imo decked completely out with fancy woodwork, granite, siding, windows, gigantic patio, the works and had a mortgage payment inc taxes/insurance of only $620 or so a mo. 

Reason I say this is note investing is ordinary income and depending on your tax status, you can get wacked pretty good.

Could readily be up to 40% in taxes depending on the circumstances.Assuming this project was gone into with the intention of flipping it (that is the wording you used at least), it is self-employment type income subject to ordinary income tax rates and self employment tax. 

For any business deduction, it needs to have a business purpose and be "ordinary and necessary."

This is above cosmetic improves and include building a deck and installing new landscaping including a large pave stone patio.

- if you dont have 25% equity documented in the recently converted rental you will not be able to use gross rents X 75% - the PITIA of the property AKA ... you will have to qualify for the entire PITIA with your earned/ordinary/wages/etc - If you move back to your parents or a rental/apartment then we'll need 6 months (grey area - my underwriters comfort zone) of rental receipt before we can use gross rent X 75% - PITIA with out evidence of 25% equity.