@Felix L PerezIt is okay if you are not proficient in tax - you can easily hire a tax accountant to help you.I am not good at plumbing and I would never dare to try to fix my plumbing issues.If you are involved in a flip that you acquired the property in 2018 - there won't be any benefit that you can use to do on your 2017 return.Expenses that are ordinary and necessary are deductible.

@Chris MacDonald Your trip must be primarily for business (ordinary and necessary -- necessary meaning more like "appropriate" than "absolutely have to") to get some deductions.  

@Ezell JamisonBelow is the IRS interpretation of what you can deduct"To be deductible, a business expense must be both ordinary and necessary.

to take a business deduction - the deduction must be ordinary and necessary to your business.

Such conversion need not comply with the requirements of the following specific provisions of this chapter:(a) Section 13-196-660 (height limits); however, in frame buildings, four or more levels of living space shall be prohibited and in buildings of ordinary construction, with or without attic living space, five or more levels shall be prohibited; (b) Section 13-196-050; however, all dwelling units must comply with the exit provisions of Chapter 13-160 except basement dwelling units may have a second exit through a room containing a heating plant; (c) Section 13-196-670 (stairwell enclosures); (d) Section 13-196-680 (corridor enclosures); (e) Section 13-196-690 (dwelling separations); (f) Section 13-196-710 (basement ceiling construction); however, if the basement contains a dwelling unit the entire basement ceiling construction is to be wood lath and plaster of half hour construction; (h) Section 13-196-720 (heating plants); however, basement apartments are to be separated from heating plants with partitions of one hour construction.

It's supposed to be considered ordinary income, but when I plug it in, my tax bill rises by 50% of the amount of interest I report. 

If an audit ever comes up - I would just mention that the LLC is required to make the payment otherwise the property would go into foreclosure; hence is it ordinary and necessary for the partnership to make those expenses(and therefore qualified to deduct the expenses).

Its knowing what to do with all your income and expenses and where it goes on the forms.If you've really wholesaled any properties, that's ordinary income. 

Delinquent HOA assessment not paid by the foreclosed owner is a common problem that becomes the burden of the new Buyer, who has to settle with the HOA.Do the (sometimes) excessive HOA back dues increase the Cost Basis of the property that can be written off against ordinary gains or does it expense out (as passive income) on IRS Schedule E?

After you pay ordinary income tax on your $112,000 gain, you would have $410k - (30% of $112k) = $376,000If you can take that $376,000 and put 25% down on a large property (or multiple properties), you would control $1,504,000 worth of property.