Even if it IS repaired, I also read that just having the repaired sinkhole automatically reduces the value of the house by at least 10%.  

@James V ScialesThere are no magic wands to reduce tax liabilities.

Then again it might be worth it to you to build up a solid business relationship with this particular contractor but it seems to me he is already reducing his risks since you are paying for his labor.

We were going to put in an electric insert to keep a tenant from actually burning a fire in it, but after checking with two retailers, it seems that no one makes an electric insert that will fit.Any ideas on how to handle the fireplace with a new tenant? 

No place is perfect but I go to Arizona too often in the summer and I cannot handle the heat in the low elevation cities in the summer.  

Speeds are reducing from  100 mph to 80 mph and still above the speed limit.

@Michael Hooper this publication of mine here on BP may help you get a better idea of how to handle these lending situations in the future.

Reducing the value and list of things that I needed for the VA post-closing was how we got the deal.

Many of you have shared your preference and benefits of having tenants on M2M Leases, how do you handle Taxes?

I usually handle absentee properties so this deal through me for a loop.The home is worth 400,000 as is, the owner owes $310,500 to the bank and had $88,500 in equity.