Then By the pictures alone, if I can see that all else is needed / I'm wanting to do is to update it a little bit , I.E. new flooring and paint the interior, and maybe paint the cabinets and replace the countertops in the kitchen and put on some new hardware and the total of these upgrade is under $5,000 .......

This is a pretty good size addition, we are adding a 2nd story and additional foundation to gain approx 1400 sqft so basically every interior wall needs to go.Quiet little house from the outside.

You need an accountant who is versed in international tax.

No one, especially the ladies, likes going into a dark and dingy basement.Put LED lights in interior fixtures.  

Possibly intern/ mentee.I'm doing many projects-- fixing up some buy and holds, currently purchasing a multi unit property and seeking rehabs to flip.  

However, it might not be a normal build, walls and support first, additional temporary support if necessary, rood next, then all interior, this prevents rain delays, but it might cost a little more and the additional work delays the timeline.I wish there is a problem like this in LA.

My vision is International,  so I am excited at the knowledge I will gain and so looking forward to the real life experiences of Profiting from Real Estate Investing.

[removed for clarity]Trade or Business Activities A trade or business activity is an activity that: Involves the conduct of a trade or business (that is, deductions would be allowable under section 162 of the Internal Revenue Code if other limitations, such as the passive activity rules, did not apply), Is conducted in anticipation of starting a trade or business, orInvolves research or experimental expenditures that are deductible under Internal Revenue Code section 174 (or that would be deductible if you chose to deduct rather than capitalize them).

My wife and I work together as a real estate and interior design team, specializing in green design. 

Your particular situation may vary and I suggest you consult with both a CPA and maybe a CA who is well versed in international taxation.The first issue is that, if your wife has maintained her US citizenship or if she has dual citizenship, US tax law is such that you are taxed on your worldwide income.