Helping parents, would like help back

[Robert Lobue]

Hey friends, 

I am totally new to BP and have read a couple of books about REI including "Rental Property Investing" By Brandon Turner. A few years back, I got married to my second wife. She has her own home in our town in northwest Arizona. Due to my parent's age and my mother being handicapped, we moved them from Iowa to my wife's home. We set the rent for them at $500/month even though the going rate for a home such as this is closer to $1,300 due to their limited income, their nest egg, and the fact that I am a pushover :). We have claimed them on our taxes but have not started a real estate business yet. That claim is worth $1,800 in tax credits each year according to our accountant.

Would like some advice if this property can help us kickstart our REI business and get us to start investing in another property? Claiming a loss on that property?

Some helpful facts:

• - The home we live in has approximately $175,000 in equity, value $475k
• - The home we have my parents live in has approximately $160,000 in equity, value $288k 
• - I'm concerned that the real estate market is WAY too hot right now and concerned about investing until it cools off a bit
• - Credit scores considerably above 800
• - Looking to be a landlord of a small number of properties at first, maybe I'll catch the bug?

Thank you for your help!