You can only use the interest on the inside loan, and it may not be deductible if you report it on your personal tax return and cannot itemize your deductions.

In theory the items you are mentioning are fixtures with a 7 year life that are eligible for bonus.

Basically it dictates that such a structure would only need to address items related to health and safety.  

I don’t know what your specific line items are like taxes, water, etc... but a $1200-$1300 Rent roll may not cash flow after you move out.What is your projected cash flow assuming you were renting both sides?

. $18000/10 year life span/12 months in a year= $150 per month for 1 item.

But our feeling is that our agent has not done such a stellar job on the first 3 items, even though she's supposedly a top agent in the area.We probably set the initial price too high because we wanted to recoup the costs of the rehab that, as if often happens, ended up being a lot more expensive that we originally thought.

The people at the local hardware store where I usually buy my paint have recommended the Zinsser B.I.N. saying its the only primer that will block the nicotine stain, and as you stated it is very expensive.  

I feel these two items should be tenant responsibility.

If landlord is paying that expense item.

That's for rent days, maintenance issues, discussing any item, etc.