If you inherited the house from your dad, your 'basis' in the house is the Full Market Value of the house when you got it (this is the amount you use as Cost Basis when you set up the house as an Asset in TurboTax).
(1) Depends. You could add another Rental Asset of 25K in the rental section. That way the improvements will be depreciated along with house itself. Or, you may be able to claim it as an expense if you qualify. TurboTax will give you the options (see screenshot in link below).
(1a) When you sell you don't use the 25K as a deduction. The remaining basis in both the house and the improvements (if you chose to depreciate them) will be your Cost Basis for determining Gain/Loss on the sale.
(2) Yes, you can claim expenses you paid the Property Manager as Rental Expenses.
Here's detailed info about Adding Improvements to a Rental Property with screenshots you will find helpful.
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