(If you invest the funds elsewhere, they might be deductible elsewhere but not on schedule E for that property)    My thought was to deposit the funds directly into a segregated account and then use the funds to pay any and every qualifying expense associated with the property until the account is depleted - possibly including loan payments, taxes, insurance, utilities, management.

Also if there are any special amenities not normally covered by an HOA (utils?

Average-Good condition)Rehab = About 20k will meet with GC to get better estimates In to the house = 70k (not sure if this comes after total expenses or not.. sorry)Holding Cost (estimated 4 mo ) = about $4300 plus utilitiesClosing Cost = $2900Now in to the house (After 4 mo) = 77,200 plus utilitiesSelling Costcommission = $6600 (6% of 110k)(Maybe) buyers closing cost = 6,600 (6% of 110k) If I'm not missing anything and my estimates are correct I'm left with 26k minus utilities I hope this is considered conservative.

We have an ALTA survey (for title)- did you all need another survey viz. topo/utility/boundary by architect?

Local Utilities (for more than just utility service)They also trim trees off power lines and check into gas smells.

It's much easier to invest with confidence when you have a support system that you can utilize. 

I will utilize debt for leverage in the near future.  

My biggest concerns pertain to:-Out-of-state investing-What stipulations are there for financing an investment property located in another state -Deciding on whether to personally obtain the loan or do it through partnership's LLC-If partner lives in area who is highly valuable, but currently rebuilding credit score, would they need to be involved in financing process-When partner's credit is improved, what are the stipulations for the partnership if we decide to utilize the 3.5% FHA Loan or use the partner's VA Loan benefit to purchase a multifamily with a 203(k) loanAny help would be greatly appreciated!

Pamela,As this stage early on I would utilize this forum to see who will really spend the time to answer your other questions.

It is no different than any other utility - are you liable if your tenants misuse the water or electricity (i.e. grow op, unlicensed home brewer, etc)?