I have 1 buy and hold experience along with contractor experience. 

That being said, how did you come up with that number, is it based on historically in the past 6 months homes normally go for 15% off MLS price, or did your contractor specify the amount of work needed?   

We didnt have time to bring a mold mitigation contractor to look at it yet but from what we can see, at least 2 rooms and a bathroom in the basement will have to be demolished or gutted and redone after fixing the mold issue.

The reno started in December and I am putting it on the market in a few days.Knowing I didn't put it on the market to claim "operating expenses", since some work started in December - is that amount of contractor payments and purchases out for claiming in 2017?

Everything from supplies, labor, contractors, permit fees etc.

Things like get HVAC units serviced, check all the plumbing for running toilets or dripping sinks, add CFL bulbs to common areas, etc.What might be safe is to invest $200k, then save $40k.

You'll begin setting up a team in that area (i.e. real estate agent, contractor, lender, inspector, property manager, etc.) to become even more familiar with the area and soon enough, that market won't feel like it's out of state anymore because you'll know it so well.There are many things to consider but I think it first starts with your knowledge and experience of analyzing deals.

Hey @Eddy Reynoso I'm a contractor in the area and work mostly in Northampton ($).

The home has been framed with electrical and plumbing in place but the current owner has since lost financing and cannot complete the renovation.

Right now it is very difficult to find contractors for renovation jobs as there is a severe labor shortage.