So, we separated all of the plumbing, heating, and electrical.  

As far as electrical, your going to need an upgraded service if you want to separate the utilities.  

I did have to hire out a bit of carpeting and vinyl floor installation, as well as installing electric baseboard heat upstairs, though.  

Using the Zillow mortgage calculator, my mortgage would come out to be $650 a month not including any other miscellaneous expenses. http://www.zillow.com/mortgage/calculator/payment/...The full breakout is as follows:Expenses per month:$458 - Property and Interest $125 - Taxes $67 - Insurance $105 - Maintenance and Repairs (Based on 1% rule)$25 - Advertising for tenants ($300 a year on the high end) $128 - Electric  (rough estimate)$30 - Water (rough estimate)$70 - Google fiber Total Exp.: $1008This is an extremely rough draft but I feel like I've covered a handful of expenses with over estimating advertising costs to find a tenant. 

The basement flooded because the electricity was cut to the house during a storm.  

The house is a foreclosure in my area and needs quite a bit of work, which is exactly what I am looking for, but I am not sure how extensive the damage is to the plumbing and electrical systems.

Did some plumbing and added a couple circuits, nothing major electrically.  

As an example, if your house is 2000 SF and your home office is 500 SF you can deduct as a business expense 25% of property taxes, insurance, electricity, heat, etc...

And just wait until the plumbing, roof, and electric all gang up on you at the same time. 

. $25k sounds like a lot, but when you install new roofs, HVAC systems, hot water tanks, ceramic tile, new supply lines to angle stop valves, vinyl plank flooring in high traffic areas, carpet in bedrooms, faucets, fixtures, electrical panel updates, etc. it really is not that much and important if you plan on a long term hold.