People often have a misunderstanding of depreciation recapture.Yes, you do have to include the depreciation recapture as income in the future...BUT it is taxed at a maximum rate of 25%You may also benefit from a time value of money aspect - I would rather get a deduction now than potentially having to report it as income in the future.

Glad to hear you love the remodeling aspect.

@Marvin Mitchell sounds like you're drawn to the aspect of forced appreciation.

If you are taking out debt to put up your money (i.e. from a HELOC), you should also account for the interest on the debt payments.There are lots of tales of partnerships going bad, so I highly recommend getting the partnership in writing, covering all aspects.

I wanted to understand every aspect of real estate and know it well.

You can try and negotiate almost every aspect of the deal.

I have been doing my own research on real estate and the business aspect of it.

As I am fresh out of college (and I stayed local for it) I am new to even the simple aspects of home/property buying hence why I wound up here. 

If the total cost is $40,000 you will have no idea what aspect cost what.

They make adjustments for all aspects of the differences in the property including location.