You may be able to trade debt for equity to a private investor and give them a split of the equity in the home rather than debt, however, outside of that no one is going to invest in something with 0% returns especially not in this current environment

For property owners with out-of-state investments, is it necessary to keep all receipts and invoices for write-offs during tax season, even smaller jobs performed by the PM's handyman?

I track everything tax related as well. 

We have a property in costal NC and selling is just a death trap of taxes.

If so, a best course of action would be refinancing those into lower-rate perm debt which should lower monthly payments and maybe provide some cash-out - that would be the cleanest/most conservative way to build up some more capital

Factors such as higher interest rates, taxes, and insurance can significantly impact potential returns for investors.Remember, success in real estate investment often hinges on buying properties at the right price rather than selling them.

We would have a positive cash flow of 150-200$ after property taxes and property management fee.

Welcome Brandon - I have properties here in the wyoming valley.I am a native to the area.Scranton has many hoops to jump as an investor - esp. an out of the area investor.One is you'd have to hire a property manager if you do not live in the city of Scranton or within 20 miles of the city.Real estate taxes are high -that plus the current interest rate and ask prices makes cash flow an issue.You can find "deals" but please do your due diligence.Here is an example of a potential deal I am evaluating in the hill section of the city: 20 y/o, 2000 sq ft. 3b/3bath TH - Needs paint, new carpeting, and general wear and tear repairs after a 4 year tenant.

Unit A is about 100 years old and Unit B is almost completely new.Pros:-The duplex is in a very desirable neighborhood with home value appreciation year over year at about 50+%-Rent is also in high demand within this area-Cash flows well even with high interest rates and increasing property taxes-Home is price below average cost per sq ft-The house has been renovated and some parts of it has been remodeledCons:-All issues are with Unit A, the 100 year old unit.

But she wanted to know if she can deduct the principal amount that she paid to the person off of her taxes since she has to report the interest as income.