(Although, our duplex more than covers the loss, this property was a means for us improving our financial situation and allowed us to get into the investment game).

Many PM's go =out of business because they front repair items for their owners.. only to have the owner tell them to pound sand and move the property somewhere else thereby stiffing them for cost they fronted..

But I would begin with raising a stink with your agent and the sellers agent to get the items they agreed to fix taken care of.

use excel and just do a list of the assets:projects with the items I just sent you via email.

No problems here.However from January 2016 until when I sell it, I will have no rental income and therefore operate at a loss.

You still need to go through the P&L's and figure out which line items need to be addressed.Bob, Nice to see you coming around trying to again educate me on CAP rate again.  

Yes, you get paid for items used to protect your investment plus interest. 

Do these items earn their keep when it comes to the appraisal?

Regardless of what type of loan you utilize, the taxes and insurance will be the same (though some lenders may offer/require escrow for these items).

Hi, @Ben Roberts.Is she willing to take a loss (i.e., bring money to the closing) or has she considered a short sale with the lender?