-New chairs on the patio after guests broke thoseSo I definitely like having that.

take the depreciation, because it lowers your ORDINARY income, which is at higher rates (up to 35%) versus CAPITAL gain which is up to 20%.

That's taxable at ordinary income rates, maybe with SET.Fix and flips make no sense if there's no work to do.

I don't think that your Passive income (Real Estate) would allow the offset of your Ordinary Income / Short Term Cap Gains.

Specifically I see many houses have an enclosed patio room(not bedroom), which was built without permit. 

Real property depreciation unrecapture is actually not taxed at your ordinary income rate (depreciation recapture is).

If you become successful flipper you’ll pay ~50% taxes on your ordinary income.

Whereas, if they give you a number that is more in line with reality and what a passive investor should expect for such little risk, then you might be inclined to tell yourself you can do better.In neither case were you able to dig in and find out how they operate and what makes them special or what makes them ordinary.  

We are all "high rollers" whom "value our time" so much that we can never be bothered to chat up the handyman in the tile isle at Home Depot or the concrete guy pouring a patio at the house down the street. 

In my book, if you're paying ordinary income tax on your real estate profits you might as well be working a job.