Furthermore, when you sell the property any and all depreciation taken as a rental property must be recaptured as ordinary income regardless of whether you move back into the property or not. 

This will provide more continuity between public spaces which will make 2 smaller spaces feel larger, and you may be able to utilize the existing over head door opening to let out to a patio...  

Ordinary income, self employment, Fed and State.

So I get that $8K in ordinary income and only about $4K ends up in my pocket.

Shortcut 1 : a route more direct than the one ordinarily taken2 : a method or means of doing something more directly and quickly than and often not so thoroughly as by ordinary procedure, "a shortcut to success"Yes there are shortcuts to wealth.

He warned me it's possible that it is located under this cement patio in the yard, and then it becomes a giant construction project to inspect it and that would blow up my budget and make me back out.

Tenant also stated that they seem to have mice in laundry room (first floor, winter is coming, nothing out of ordinary). 

Flipping houses is a job that is taxed at the ordinary income level...how many "professional" house flippers do you really know.

A good accountant will be able to classify your properties based on their merits, as opposed to a single classification for your business.In other words, if you have 10 properties, 5 of which you flip and 5 of which you are holding as investment, your CPA should be able to get half the properties taxed at long-term capital gains (investments) and half taxed at ordinary income (dealer).Without a good CPA, you run the risk of your entire business being classified as "dealer" and paying higher taxes on all properties.Also, your CPA will recommend how to structure your business entities to support the way he will be claiming the income to the IRS when he does your taxes.

When you buy a property with a subject to deal, and do it properly, you own the property just the same as with an ordinary contract.