Those specific costs would be included in your depreciation basis for the rental portion of your house.Consult your CPA for more specific guidance as it applies to your unique circumstances.

My question is: does the rental property tool still apply to large properties, let's say 10+ units?

The seller accepted the concession at closing so that I can apply the funds towards repairs that were identified in the inspection report.

Over the years i have been extremely passive with the business and never took the time to really learn how to property invest in real estate, i just assumed i was doing things correctly, i didn't know how to do the numbers, just went with the flow.Since im down to 5 rentals and i made a very small amount of money selling off the negative cash flow rentals that just never recovered from the market crash in those 2 areas, since i bought to high in the peak of the market prior to the crash. i decided to apply for a mortgage to purchase another rental in my local area using some of the new knowledge i have learned recently, but after applying for multiple mortgages most of the places i applied basically said no, that cash flow to money lent to me is in a risky zone, basically i own properties that were not bought with rental numbers in mind, so turning them into rentals they barely cashflow except for my very last property i purchased that i did basically a flip on, that left lots of room between the mortgage payment and rental rates in the area.

I started a business entity and applied for business credit.

We turned it into a rental and has been cash flowing for over 2 years, so I believe that should not count against us while applying for another loan.

Funny, seems like this thread just keeps breeding house-hacking interested ME's, as I am one as well, I've been listening to the past BP podcasts after my brother turned me onto them, and now trying to get involved in other ways to continue moving forward. 

Ive been wanting to get involved in real estate but funding has kept me stuck.

I was more or less thinking about it as providing a one up to competitors, but did not think about the risk involved!

Standard foreclosure laws and protections apply.