Think of the depreciation deduction as basically an interest free loan, a little better or worse depending on your tax rate while it's deducted.

The size of the home would only be around 1600 sq ft. and I am looking at going with a basic rectangular shape. 

Tit for tat basically.

Rents out 3 bedrooms to roommates and basically lives for free.  

This basically mean that, the business is ran by all of the members.

I use it like a favorites button basically.

The changes are all designed to protect the consumer, the buyer and the seller in each real estate transaction.And while everyone generally agrees that consumer protection is crucial, some of the changes may prove to be challenging, both to real estate professionals and to the consumers they serve.Before getting into the specifics, here are two basic reasons the new RESPA requirements may become challenging: 1) the need for more specific consumer disclosures, and 2) the need for those disclosures to be presented to the consumer in final form 3 days prior to closing.Conceptually, specific disclosures, as well as strict timelines for completion by professionals and presentation to consumers, both sound like excellent ideas.

Additionally, depending on where the property is, you may have to go through dewinterizing it, so keep that in mind as well.Once the property is up and running again, you can basically implement your rehab plan and proceed accordingly assuming you've taken care of any issues that might obstruct you being able to start working (i.e. getting certain permits, if needed) As a sidebar, remember to plan on making sure everything will be up to codes upon the completion of the project.

Basically, everything will be covered.LABOR COST: Interior: $2100; Exterior: $2200MATERIAL: $1900 (paint for interior and exterior)A/C UNITS: 2 units are required.LABOR + MATERIAL: $4750 EACH ($9500 for the pair)

I bought it cheap from a wholesaler I met on BP and will have it thoroughly renovated so that it is basically a brand new 40 year old house.