I did go on the website you suggested and it seems that it would be very helpful if I had the names ahead of time to see further judgement details.

Send me some more details please.

However details matter. 

These are the details about our house.Purchase price: $855,000Current approx value: 1,100,000Current monthly mortgage payment: $3100 /monthProperty taxes ~ $11,500 /yrRents in the area for a similar house: $3200 - $3400Given the numbers, I understand that this would not qualify as a good rental property but given the crazy real estate market in the bay area we are worried we would not be able to purchase again should the market appreciate at the rate it has been in the past if we sell this house now and live in an apartment for a few years.

I knew house was worth at least 200k once renovated and my realtor confirmed the value and made a detailed list of what wanted to do and what was going to cost me. 

I would have a lawyer hash out the details. 

you don't need a seller credit U need to renegotiate the purchase price.. is what normally would happen then pay cash to have all that done.or you can ask the seller to fix those items prior to closing and pay full price or have the seller fix those items prior to closing and raise the purchase price.

. - Your agent should be able to provide guidance, in my state just because something is past the end of it's useful life doesn't make it part of the items we can request repairs for. 

The SALT deduction is for itemized personal deductions only.

Also, dont forget to add other costs to your depreciable basis of the house such as:1) if any improvements were done to the house2) The following items are some of the settlement fees or closing costs you can include in the basis of your property.