You can deduct prepaid interest, insurance.

I did not think you did either but I am pretty sure you do.and in Oregon you don't need a real estate license but if your buying a property to resell IE your not owner occupy you for SURE need a developers license.. and to get one is simply a fee and you need a bond and insurance.. so we cannot make a blanket statement that its legal In all 50 states.. to buy then resell.. 

My costs go up every year in taxes, insurance, costs of repair, HOA dues, etc.. if you choose to, then definitely include something in return.  

Mine didn't see me needing the protection of an LLC until I grew larger but advised liability insurance.  

Apparently the second buyer terminated rapidly after talking to neighbors who told her the HOA is very slow and reluctant to proceed with repairs.If any of you guys have dealt with a similar situation we would love the advice.  

Get a good condo lender, who knows how to read the budget and insurance requirements properly. 

and a big one, will your insurance provider cover a claim like a kitchen fire if the kitchen was being used for a commercial purpose?

We're in our due diligence period for our first deal, but we're having trouble finding insurance for it.

If there aren't any major red-flags then I'll proceed to make an offer so I can get more time and really inspect. 

*Proceeds after paying off a HELOC were $65K.