With the work that I have been doing (new construction, addition, full Gut, Renovation) my costs are roughly $170/sqft (depending on finishes, this was a really nice finish look) $120/sqft , $80/sqft, $70/sqft... in that order.

The tenant who is in it now is a single mom with little kids. 

I work as a software engineer but I'm looking to grow a real estate portfolio to build additional income and wealth over the long term.

Those items are currently deductible and, in addition, not subject to depreciation recapture later on.Ryan, it is common for CRE investors to use cost segregation to eliminate passive income and not uncommon to use it to offset earned income for those with the real estate professional status that you mentioned.

Michael,I agree with @Eric Weireter and @Christian Hansen.. with an additional thought/caveat that you are going to be buying at or towards the top of the current market cycle (in my sometimes-humble opinion).

@Clyde StackhouseRenovation expenses prior to having the property "rent ready"should be capitalized and depreciated as an addition to basis.

An Umbrella policy provides an additional limit of Liability coverage (usually in increments of $1,000,000) that responds if underlying policy limits get exhausted in a covered claim. 

Additionally, it may present some potential income that would never have fallen in my lap otherwise. 

In addition to that, I have family in New York and my fiance has family in Cincinatti.  

I have a few others on my list, but not sure which ones to meet to maximize my time there.In addition, I'd love to meet with any local investors over a beer or coffee (on me!).