So the lender may do a deeper dive and have a different percent they will allow to be considered a reserve.

Just put it deeper in the tickler and keep going, yes, that's the right strategy.

It is offensive to the other tenants and I am worried that the odors will penetrate deeper into the building.My question: Do I have a legal right to access her unit to have the "damaged property" repaired by removing the carpet throughout her unit and begin deodorizing the unit?

Jonathan might have and others will come off as crass from time to time, however you would be foolish to automatically discount or become defensive towards their comments without deeper honest examination.

Had a portable toilet dropped for the 3 days too .I wouldn't do it myself on deeper trenches as shoring will be needed.

Think about wholesaling it to somebody with deeper pockets if your ARV/repairs/cashflow assumptions are correct.

However, to go a little deeper with this scenario if you have W2 income and you're paying taxes there, once you start renting the property your annual net will include the add back of the depreciation expense from the rental property, therefore reducing or eliminating your tax liability. 

One of the few ways to do it is to build new housing and try to sell it before the bubble bursts: http://www.nytimes.com/2015/07/26/upshot/the-housi...If you dig in deeper than listening to mainstream media and Realtors saying the market is so hot and you better do anything you can to get in now before you get priced out, you see that is true right now, maybe, but is nonsensical looking in the future.  

@Alejandro Ferrer when it comes to the taxes part of it, you should really dig in deeper than the surface level.

I need to dig deeper and understand the value side as I know their value - bring the money and I want to promote the value add/ improvement and return for them