You could add a couple sets of french doors and open it to the patio area, make it a game room, mother in law quarters, or even a master bedroom suite, etc.

This depreciation will be recaptured as ordinary income at your marginal tax bracket rate or 25% whichever is less.If your marginal bracket rate is 15%, then the federal income tax on the sale of your property could be around $1850.  

The property has two existing 2000 sq ft shells (one was built to be a huge garage and another a detached patio with high metal roof and think concrete).

If repairs or restorations are for ordinary wear and tear, then the landlord must pay for it.

Your income from a flip is NOT capital gains, it ordinary income and it is taxed at your marginal tax rate.

MAINTENANCE: Notwithstanding the provisions between Effective Date and Closing Date, all personal property on the premises and real property, including lawn, shrubbery and pool, if any, shall be maintained by Seller in the condition they existed as of Effective Date, ordinary wear and tear excepted, and Buyer or Buyer's designee will be permitted access for inspection prior to Closing in order to confirm compliance with this standard.

Besides the nasty carpet stains and general filth in the unit, they left all their dogs' poop in the back patio area, and they left some food in the freezer, and some meat in the kitchen sink.

If this was just an ordinary old vacant home and our circumstances were different we would be likely to respond to the mailer. 

It looks like I will have about 30K Income from my business this year on my K-1 form, 40K from "Interest Income" that was earned in a Universal Life Insurance contract that I have withdrawn (my understanding is that this is 'ordinary income and NOT capital gains). 

So you will be taxed your ordinary income tax bracket + self employment tax 2.