I have seen some banks make exceptions to that if the property has had long term tenants and there are not major improvements/reno needed (i.e. turnkey). 

When you analyze you start with the rent, then subtract your minimum CF (always pay yourself first), then the rest of the expenses (except the loan pmt). 

Although there’s still plenty of RE gurus slithering around, so there’s exceptions to every rule. 

It sounds like you came across either a lazy agent, someone who doesn’t frequently work with investors (most agents don’t), someone who has a poor understanding of providing exceptional service or someone who doesn’t feel you’re in a serious enough mindset to purchase (doubt it’s the last one, just letting you see the whole field of view from an agents perspective).

However, interest and property taxes are still deductible as itemized deductions on your Schedule A.Rented for an Average of 7 Days or Less: Under normal circumstances, rentals are treated as passive activities, which are reported on a Schedule E, and net profit from the rental activity is not subject to self-employment tax.

I was thinking something like:1) Bring in an inspector (as if selling the place, except maybe even more thorough, since there's no incentive for the transaction to succeed), and have them draft up a well-documented report.2) Use said report as a baseline, and make it clear that any slippage caused by their neglect, even if it's major repairs caused by waiting too long to bring something to my attention or get it handled, is their responsibility.3) Get additional insurance (umbrella policy), to better guard against the liability thing I mentioned above (not sure if this is worth it though, if I already have liability insurance for the property).Any advice, or similar experiences/stories, are most welcome!

I feel just about ready to take the next step when the time comes, except one thing...I still don't know where I'm going to school!

Except in Texas, where I bought my first house from a wholesaler cash.

There is no documentation of this, except for this month...

I do not care what you make on materials, I do not care about anything except that you quoted 15K and I paid $1200 of that in materials.