The main takeaway I have gained after reflecting on last summer is that 1) chasing money alone will not work in this business, and 2) that it cannot be done alone, instantly just like that, just after reading a few books or taking an online course.  

that was one of my main concern because I guess I didn't understand how title policy works in such case. now it makes sense. 

The main area of concern is how lines 20-26g on the 4797 don't seem to have any provision for the deferred gain that is the whole point of the exchange, so when filled out it seems to show the whole gain as taxable capital gains.  

Work, work, work then the money will always come even if it’s a month or two later then expected, be grateful you are making a commission at all, it’s not easy, it’s cut throat and competing against other agents and getting sales should be your main concern.

I think the absolute necessary things are new flooring and paint inside and out, new light fixtures, some new interior doors (or just paint the old ones), new interior baseboard trim, 3 new exterior doors (change 2 sliders to French doors), siding installed on side of the house at least and maybe the back too, change out main front entrance door, new oven, rebuild the deck off master bedroom, and minor landscaping.

(city water main broke and flooded basement) insurance work was approx. $25,000.

. $17,000 between flights, office supplies, ect. 

So many investors don’t know the the benefits of that.Asset protection is the main reason for having LLCs as mentioned by @Saberian Younger  The answer to your question will become obvious when you do your taxes.

However, it can legally be used as a bedroom/extra room for the main house.

My CPA has instructed me that the auto expenses (at least the proportion used for rental activities), overhead such as office supplies, software, tax preparation, and other items which occur to operate the rental properties (AS A WHOLE) are expensable on Schedule E relative to the activity (e.g. based on number of units per property) by "cost accounting or cost allocation".