A standard leak won't evaporate and condense (except for some out-of-the-ordinary cases like some people mentioned above).

If your intent was to flip the property when you bought it, the profit is treated as ordinary income even if it took 10 years.  

If the patio is not perfect, it's not all due to us.So, negotiations have been all over the map.

They, the developer, are the HOA until they sell all the units, and then the community will take over.the ones with high HOA 200-500/mo usually are townhouses, they cover roof, paint, pool, playground, even patios and decks.

I closed while out of state, mobile notary came by my house while i was chillin on the patio in my sorts.

key=OVoxNVhwZnZRRlNyM1JJNFhIRThEWFJsMjI1eHVBI made some notes from the walk through:Curb appeal: House- yard work, shutters, repair driveway cracks, small porch for side entrance, some brick sealing / cleaning up wiring, new gutters, new flashing, 2 window (dual pain) replacement, door refinish, some trim replacement, some roof repair.Garages & Shed - Check code for add on shed (add on is nicer), foundation sunk and cracked in 2 spots, check electrical, new garage doors, new shingles on garage, some roof wood repair, Demo Shed and have firepit/patio on slab.Inside Home:Overall- Electrical (multiple types of outlets, grounded/not grounded), Plumbing (Galvanized rusting in most of house), Possible mold remediation, Roof (Seems ok, maybe new by some windows and seal some areas), How is furnace and where was air conditioning. 

Ali,Disclaimer: You're asking for legal advice so I feel compelled to say that I am not giving legal or tax advice.We don't pay 15% on rental income, it's taxed at the respective taxpayer's ordinary income level.

@Hobart King I agree with the others, sounds like a crazy high amount to pay for insurance on a rental (assuming there’s not something out of the ordinary).I will say, I don’t think you can “just not have insurance” and then “get personal umbrella coverage to cover the liability”.

So compared with not having a business, none of those expenses would be deductible except certain statutorily allowed expenses, but by establishing the expenses are “ordinary and necessary”, some of those could be deducted.

It could use a few basic things, updated landscaping, some interior trim, nothing out of the ordinary.