Vetting the operators and reviewing their experience / track record is one of the most important things.

If they don't want people with any (or certain) criminal convictions to be hampered by that when it comes to renting a home (or otherwise) - then why not pass a law that the record becomes sealed and thereby doesn't show up on a rental background check? 

Existing Mortgage Balance: 228K @ 1400/mo (PITI) Repairs: 15kARV: 250KAcquisition Cost (Back Payments): 20K + 5K wholesale fee +2k (title insurance, deed recording, etc)Potential Rent: 2000/moCash flow: 7200/yr or 600/Mo.Instead of renting it, the other option would be Contract for Deed where I would request 5-10% down with a sales price of 250k.

I would record my name on the title at the county if I were you. 

Is the contract recorded?

Once I more substantial track record I'll move to 1/3 and eventually 1/2. 

They've been divorced about 10 years apparently.I checked property records and it appears only his name is on the property, even though she is the one who has been paying the property taxes.  

I want to know at what time does the public records gets updated on sites like Zillow, Redfin when the property sale transaction completes ?

In October 2015, owner dies and there is nothing recorded with Jeff Co Probate.

Then you can record your expenses there and it makes it easy for you and your CPA.Regarding startup costs versus expenses, there are plenty of articles you can find on the subject with a google search.