I've read some say not to to accept rent with "credits" towards the purchase price because the court may say they already had an interest in the house because of the payments.One RE attorney I talked to said the CA Realtor forms are sufficient too. 

Was this a situation where the investor financially backed the project and you ran it, I.e. you scheduled the work, found the contractors, sold the house for him etc?

Has a Delaware Series LLC gone to court yet in Texas?

@Alyse Oz I don’t have much experience with forming LLCs for rental properties but for use in a startup or business most incorporate in Delaware because they have a separate court for business entities and they allow for easy transfer of venture ownership to allow startups receive funding from VCs.

I'll use an example with similar numbers because I want to truly understand the reasoning here:On the high end, the interest rate would sit around 5.75%, at the cost of -.125 points (ultimately resulting in a lender credit of $164) and a P&I of $766 per month ... on the low end, the interest rate would be 5.375% at the cost of 1 point (around $1300) with P&I of $735 per month.Given that info, this is to say that if I planned on holding onto this property more than 42 months (that's $766-$735= $31 per month... then $1300/$31=41.94 months), then it would make financial sense to pay down the percentage rate up front at 1 point because beyond 42 months, I'd be saving money every month...

So based off this calculation I determined that my portfolio is strong enough to move on with my expansion plan into a new market.Business expenses as % of total expenses : 70% 1) Fixed Expenses: a)Monthly Mortgages: 45% b)Property Taxes: 18.7%c)Utilities Expenses: 14.8% d)Licenses & Insurance: 5.4% 2) Variable expense - Water bills + repair expense : 16%Personal Expense as % of total expenses: 30% My monthly living expensesa)Housing: 39.7%b)Child Care: 25.4%c)Living expense: 22.2%d) Food: 7.9 %e) Insurance: 4.8Income 1) Total Income - 100% A) Rental Income: 42% B) Wage income (W-2) : 26 % C) House Flipping Revenue: 23% D) Property Management Revenue: 5% E) Stocks/Dividends: 4% Please let me know if you would like help walking through this process as it has been super helpful to understand my financial situation or send you the spread sheet I used.

If it was spent before acquiring the property, the tax Court has mentioned the best you can do is take a deduction as Startup expenses up to 5000 and capitalize and amortize the rest. 

I love my job, but I just don't feel like I have the financial freedom to do everything that I would like.

My goal is to gain financial freedom. 

@Franklin Parker Sometimes PM firms have their own handyman, although it could be in your best financial interest to coordinate them separately.