Anyway, when we met with them nearly the first thing the landlord did was have me come over to look at all his documentation about the water heater and basically trying to justify why he was in the right and why the prior tenant had no business complaining about paying a $75 service fee for a leaking water heater (which it seems to me is normal wear and tear since most people aren't going to damage a water heater) and how he had to pay out of his own pocket to replace the thing outside of whatever the home warranty deductible was.

If I depreciate property value on my tax return to deduct my net income, will that impact my mortgage borrowing power?

I bought the first house in CA ( Contra Costa) - 350k.I'm working as a full-time employee, software engineer, making around 126k per year.How much I can deduct:1)interest (1st year is about 9.5k interest payments). 2)property taxes (I heard maximum deduction for prop taxes - 10’000)3)home insuranceCan I deduct them all?  

I don't want any excuse for trash to pile up, plus you can deduct it on your taxes.

If anything, you are looking at taking deductions on the interest portions of your payments.

Yes you get the deductions, indirectly. 

You’ll want evidence of the condition when they leave so you can justify deducting from their deposit.

Construction started on the one in the business within a week of closing while the other has some minor repairs.Are all fees and taxes associated with the purchase of the property deductible that can be found on the Closing statement?  

I figure I am running a business and I would rather take my own deductions as I see them needed vs less money in pocket and someone else taking the deductions.

I understand that I can divide the expenses and those that are related to the rental property can be tax deductible while those that are related to my personal dwelling are not.