My number one suggestion is the 3 CMA analysis.

Heat is a big deal in old buildings.Usually @Joel Owens will jump in with an analysis, but I really think we need more information.

If so, the depreciation and interest would be added back and it should look good.Again, if it's not the borrower and you personally are the borrower then only the distributions would benefit you and conversely the contributions would penalize you.Finally, to complicate things in-case you weren't already confused if you are the 100% owner of the S-Corp the underwriter would run a "Global Cash Flow Analysis" which would combine the entities.

I have to make a few guesses to complete my analysis.

A buyer could do a final walk through Monday morning to confirm the property is still in the same condition as when it was purchased.

And finally -you may wanna check out "The Book on Flipping Houses" which was recently released by BiggerPockets and written by J Scott.

Finally, I agree with what a few others said...do not respond with an emotional battle for the property.

It was finally nice to find someone that was going to treat this as an investment and not a primary residence purchase, besides an HML.

I have finally found a couple banks that do everything in house and are willing to work with me.I really hope to learn about what to keep track of and do for tax purposes and whether or not I should do an LLC.

At the time we did not have a lot of capital, but finally found a bank that was willing to lend to us (rehab costs included), but we still needed something fairly cheap to be able to make the down payment and have funds left over for reserves and paying other expenses (utilities, insurance, mortgage payments, etc).