I pay all the insurance premiums, property taxes, materials, repairs, anything at all used for the business. 

The records or other documentary evidence must support all the following: The amount of each separate expenditure, such as the cost of acquiring the item, maintenance and repair costs, capital improvement costs, lease payments and any other expenses.The amount of each business and investment use (based on an appropriate measure, such as mileage for vehicles and time for other listed property), and the total use of the property for the tax year.The date of the expenditure or use.The business or investment purpose for the expenditure or use

If you purchase a home that was previously a rental, they will have a file on it, and everything should be up to date with minimal repairs needed. 

(Pull carpets, tear down drop tile ceiling, etc) I do not have enough capital at this point to fully handle the renovations and repairs.  

I have not yet seen the inside to calculate any repairs.

Also do you have the capital to repair in case of an issue?

I am wondering if this can be repaired (even temporarily for a few years) or does it need to be replaced?

I have not yet seen the inside to calculate any repairs.

if you renting this house you might have to put a least 20% down + 5%-6% closing cost,insurance is going to be expensive near the water, check property taxes, vacancy, repair property maintenance, like snow removal, garbage, landscaping,etc

Is it worth pursuing a house that might need $40K in foundation repairs?