@Matthew EwaldFor a payment to be a deductible expense it has to be necessary, ordinary and reasonable in your trade or business.Tools for a rehaber/flipper is an ordinary, necessary and reasonable expense and therefore should be deductible.It also looks like it can be currently written off instead of depreciated.

Due to legal restrictions (search for Dodd Frank law) there can be very negative consequences to how it is structured.

Think E*Trade or Fidelity with different paperwork.

I'm a software engineer by trade, and I'm enjoying the academic approach to analysis that this book brings.

The construction trades are hard on the body, so I am very interested in rental property investments as a way to transition out.I am looking forward to reading and learning as much as I can from everyone here.

You should have the intent to hold the replacement property for rental use, appreciation, or use in a trade or business.

Here is a link to a section of the IRS website that should help with your question. https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals/rental-expenses/rental-expensesEssentially only interest, mortgage points, and real estate taxes can be taken as a deduction in the year you purchase the rental property (provided the rental is placed in service).

My partners found a wholesale deal that didn't work for them, traded another investor for one that worked better for them.

We typically get city officials and trade specialists to come speak, so people you will need to talk to along the way with investing in Lynchburg. 

But to trade a wholesale fee for an interest in the property?