Yes, he's gotta report that rental income on his taxes.

I have recently consulted with both WealthFactory and Wealthability regarding tax and wealth planning.

That sounds like capital gains tax on $63k-$113k depending on sales price and closing costs. 

It's a cool way to learn, build equity, and score tax benefits.

You'll also need to consider ongoing costs like maintenance, taxes, and possibly financing. 

.- If I deduct the depreciation for tax purposes, I can't add the flooring cost as an improvement to the cost basis when I sell the property down the road correct?

The tax code is verry complex and everybody even accountants will tell you different opinions as to what is right and wrong.

The flood insurance is offset by $600 yearly taxes, but I am having a hell of a time trying to sell it at $93k.

We started the journey last year Sept 2023.The deal closed mid November, after a 2 months journey to find the perfect property (price/Cash Flow/appreciate) and closed on it.Made her aware the holidays isn't the time for renters to move, however, once W2 taxes were issued in January 2024 she would get a tenant.She is officially a landlord!

Make sure to research property taxes, insurance, and any outstanding utility bills.