The "land basis" cannot be depreciated, so your depreciable portion will be lower than $350k.We typically consider $1 million in building basis as a rule of thumb where it makes sense to evaluate the potential benefits.

The reality is stocks are NOT "investing", there savings accounts with super charged interest earning potential, that comes with the risk of going to 0.  

Risk mitigation is crucial, and learning from past experiences is beneficial.

Cons - Risks as stated by others, can limit which renters are looking at your house. 

Hi, pre foreclosure in all of its permutations, before the bank sends Notice of Default (NOD) or efter which is state even county dependant but often starts a 4 week clock till the trustee auction are the 2nd most difficult deal scenario and IMHO only experienced investors should bother, the 1st most difficult deal scenario are bidding at the court house steps on lord only knows what is being auctioned off sometimes even 2nd mortgages, you need to do so much home work to attempt to reduce your risk at the court house steps...Pre foreclosure no one talks about these issues, always about the nice sounding stuff like "motivated seller" get a good deal etc etc both are usually not the case.- 95% of folks in pre or post NOD want to stay in their house, keep their house inspite of them 100% will loose the house at the auction. 

If the stars align, we estimate that we could potentially earn $1,000 to $1,500 per year from the property.

I am wondering if anyone has ever taken legal action against property managers, and if they think we have a potential case? 

@Lauren Kormylo agree that there is a lot more risk and headache with wood burning fireplace.

Once I've completed these initial projects and built up some capital, my long-term goal is to transition into buy-and-hold investments in potentially more affordable markets to maximize cash flow and scale up.Right now, I'm particularly interested in investing locally here in the Seattle metro area.

Secondly, short-term rentals provide flexibility for owners, allowing them to potentially use the property themselves when not rented out.