Our joint venture partners, who are usually on title, are never informed of the presence of mold in our properties...we don't even charge for the Microban treatments we do on every home we buy just as a precaution.

He mentioned something about some foreign drug dealers were depositing cash by "mules" and were not traceable by government.

And depreciation is taken as a business expense and then the net profits must be distributed to get the tax-treatment of a REIT, right?

Youngstown is notorious for drugs and that is something to consider .  

Also, maybe her last landlord drug his feet on repairs and she has vowed to be more forceful with future landlords.

He was arrested finally but only for possession of drugs.

If the LLC can elect S-corp treatment, doesn't this level the playing field in all regards related to taxes?

What is described above is similar to the tax treatment of wrap notes where the IRS wants to ignore the installment basis and tax all of the phantom gain in year 1.

That would not allow you to treat them as business expenses for this year, but add to your tax basis.Even if they were indeed separate, because they happen within a short timeframe they could be deemed to be part of one big project.You need to be careful to document them as separate repairs to the property.It sounds like this could be difficult due to the size of repairs that were done.As Charles points out you can definitely split the depreciation and have items like flooring, appliances, window treatments depreciated over a much shorter timespan.

He already paid for the termite inspection and treatment, I paid for the smoke alarms and CO detectors and the permit fee to get the town inspection.I don't know what the actual amount escrowed at the seller's attorney is because they changed a bunch of things in the addenda.