Dale Shin ,  lets see,  replaced all windows, due to discoloration and damage,  the pic of the two windows the one on the right was a patio door,  the garage was 3/4 enclosed and used for dogs, ( found 9 portable kennels in the attic). and it smelled like it too. 

Depending on which legal entity you use to conduct your wholesaling, you may have to pay extra self employment taxes on top of ordinary income taxes.(2) I put together a great YouTube video a while back to answer this exact question.

It's not quite that simple, b/c you need to factor the ordinary tax hit (regardless of whether the earnings were ordinary, LT cap gains, dividends, etc.) of the distributions you'll eventually take.    

Tenant agrees that upon expiration of the term of this lease, or upon the earlier termination of the lease for any cause, Tenant will at once peacefully surrender and deliver the Leased Premises together with all improvements thereon to Landlord in the same condition as received, ordinary wear and tear excepted.15.

Yes, looking over the laws for KS, it just mentions some items that fall under ordinary wear and tear and excessive damage and filth.

You'll pay ordinary income, probably self employment, and ACA surcharge tax - could be 40%.If your intent is to hold it for productive use then you can 1031 and the tax is deferred into the next property.If your intent is to live in it and you satisfy the residency requirements of 2 years residence out of the 5 year period prior to sale then you get the 250/500K tax free option.Each one has their uses.  

Make sure to post pics of the outside front and back, kitchen, living areas, bedrooms, bathrooms and any patio area.

I've also heard of people making a "balloon" payment at the end of the term instead, do either of you know if that is more out of the ordinary?

I could have taken the money and run BUT I knew the power of wealth building buy and hold real estate.Had I taken the 10K, it would have been ordinary income taxed at the highest level and I would not make another dime on the property.

The house needs $15K external update (replace sidings, patio covers etc) and $20K inside update.