I have only used that IRA to invest in private notes and hard money lending because those types of investments produce "interest" income which adds to my ordinary income tax bracket levels.

Flips are earned ordinary income. 

Depending on income levels, this passive loss may or may not be deductible against your ordinary income. 

If the suspended losses are in excess of the total gain, the remaining suspended losses will then offset ordinary income.3.

It is one year of say 50% value depreciation vs. all of the gain being taxed as ordinary income. 

Any ordinary and necessary expenses are deductible. 

Patio screen busted(frame) and window screens in general.Busted bifolds or bifolds that came of the track.  

If you have a net capital gain, that gain may be taxed at a lower tax rate than the ordinary income tax rates.

The patio was turned into a room and laundry room without a permit and according to my agent it will have to be turn back into covered patio or it will not pass FHA inspection.

From the sounds of it he thinks by paying out of an LLC checking account that he can write it off which is not necessarily true and @Natalie Kolodij can help chime in but in order for a deduction to be a deduction you'll have to meet the ordinary and necessary rules to deduct them as business expenses.The expense has to be "Ordinary," and "necessary," within your line of business in order to deduct it.The other issue with this is that you may or will have hobby loss rules if you claim losses too long with out any income.The cool part of real estate is a property can lose money on paper (on taxes) forever and it will not be called into question unlike businesses which are subject to hobby loss rules.