Tyler, If you want to save money with windows make sure your windows are standard size, specially if is a low budget project.

See comment just above from @Brent CoombsTake all the cash you get back from the property...in any way, but it has to be in the form of cash (not any form of virtual money..like equity, not deductions, not inflationary value, etc...)...and divide it by all the cash you put into the deal.

Or is there a standard that allows non-ducted registers for 2nd floor areas?

MLS, standard contracts from the local association.

Given the facts that (1) I could get into a property for a measly 3.5% down, which would free up cash to invest in other places if I so chose, (2) I was already throwing away rent every month such that I could still be cash flow negative of $650/month (what I was paying in rent) and still be better off because a portion of my monthly payment would be building my equity and the rest would be tax deductible, and (3) I’m in my 20s and have the time to take a long-term view of appreciation potential, it was a no-brainer to go the FHA 4-plex route in Los Angeles, despite the fact that it is one of the most expensive markets in the country.One thing to keep in mind when looking for an FHA owner-occupied triplex or fourplex is that 85% of the market rents on all four units need to cover your monthly payment (principal, interest, taxes, insurance, and mortgage insurance).

If it turns out you don’t need it, does the loan jut revert to a standard FHA?

Here is where I currently stand with our offer:Purchase price would total 200k for all (4) units with a payment plan as such$850 a month interest only payments for the first two years with a balloon payment of 15,000 at the end of year one and year two.Bringing the total down to 170k then doing a standard 30 year mortgage at around 4% financed by him the seller for payments of around $825 a month. 

., you also have the advantage that part of your mortgage interest is deductible.

It cash flows on a monthly basis pretty well and I was just wondering what I can do to maximize deductions on my 2015 taxes? 

I'm wondering if there is any advise out there on what I could have done to avoid some of these fees, or if this is just standard for REOs and simply need to be accounted for in my numbers?