Considering repairs, we clear $200-$300/mo.  

Instead of you paying the landlord and the landlord paying the mortgage interest, property taxes, repair and maintenance expenses, etc., you're paying those directly and keeping a small bit for yourself.

I’m going to do 203K on this one, estimating around 50-55K in repairs for both units.

Possibility is that we get a repair and replace permit, but I would need to find someone who knows the original layout as a multi-unit and put it back as it was (not sure if this is an architect, engineer, etc.)We keep it as a SFR and use cash for reno but will there be issues when we sell an illegally converted home?

Jeff Richardson Are you using hard money for the repairs?

Not sure how you can demand seller for repair since it was never brought up.

We are planning on moving into this house and renting out our current house.Purchase Price: $220k cash, buyer pays closing costs, seller gave no disclosures and will make no repairs. 

Appliances are not included in the insurance claim of what's being covered by insurance since that falls under "personal" items.I am planning to buy a new kitchen set with the Black Friday deals coming up; however before I did so I wanted to see if anyone had any recommended tax strategies in terms of categorizing them as a repair vs. cap ex, or being able to possible deduct the expense or depreciate them?

Any advice on recording of repairs and improvements separately?

We close on 1/2/18.So I do not take ownership until 1/2/18.By then they will have gone to a month-to month for 1 day that being 1/1/18 and still under the old rents of $995.They have the copy of my lease which I prefer to use over what they are currently using and was also going to raise rents to $1045 and complete much needed repairs to this property (their unit is fine but, the others need work and so does the property in general).