@Mark AndrewsYou are required to first allocate the purchase price to land and the building.The amount allocated to land is non-depreciableThe amount allocated to building is depreciableYou may also make improvements to the property which can possibly be added to the basis(if not expensed). 

Search the term and you can find more details.Thankfully, my awesome lender realized that Home Possible by Freddie Mac was exactly what we needed and ever since I've been so confused as to why FHA is so heavily recommended all the time.  

The IRS doesn’t care how you financed the property, just that you’re properly reporting your income and deductions.There are IRS guidelines for your situation - try searching around google or talk to a CPA

Here are few things to check out as you work your way around the site:Read Beginner’s Guide: www.biggerpockets.com/real-estate-investingYou can find and connect with other BP members based on your area at: www.biggerpockets.com/search/usersSet up some keyword alerts to notify you when members are discussing something that interests you.

Use the search tool to find the information you need.

They can run your credit, show you where you currently stand, and give you advice on how to improve your credit and about how long it will take.

So how do you improve your "quick pitch"...the simple answer is you don't.

In terms of rehab I'm looking to invest an additional $10,000 to make improvements, update, and clean up the house to add value.

It seems like you made a lot of improvements to the house + general appreciation around the United States = a good chunk in excluded gain.It also seems like homes are less expensive in Rochester than in Buffalo allowing you to obtain more cash-flowing properties.

Here are some recommendations for you:Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/usersSet up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsRead Beginner’s Guide: http://www.biggerpockets.com/real-estate-investingCheck out BP Podcasts: https://www.biggerpockets.com/podcast Wishing you the best!