Keep track of 3 buckets.1) Owner occupied portion - potential deductions for schedule A2) Tenant occupied portion - potential deductions for schedule E3) Jointly occupied portion - likely prorated for both schedules.There are nuances to this, so I recommend looking for a tax pro who can coach you on this. 

Do you think it's better to start sooner with a cheaper property to get in, or potentially wait longer to save more? 

I am very new to real estate investing and I am now putting an offer in for my first potential investment property.

This is much lower than the costs associated with refinancing.Benefits of Mortgage RecastingLower Monthly Payments: The most immediate benefit is a reduced monthly payment, which can free up cash for other financial goals.Save on Interest: By reducing your principal balance, you’ll pay less interest over the life of the loan, potentially saving thousands of dollars.No Credit Check or Appraisal: Unlike refinancing, recasting doesn’t require a credit check, income verification, or home appraisal, making it a quicker and simpler process.Keep Your Current Interest Rate: If you have a favorable interest rate on your current loan, recasting allows you to maintain it while still lowering your payments.Drawbacks of Mortgage RecastingRequires a Lump Sum: Not everyone has the cash on hand to make a significant lump sum payment, which can make recasting inaccessible for some homeowners.Doesn’t Shorten Loan Term: While your monthly payments are lower, recasting doesn’t reduce the length of your loan.

The deduction is optimized as values increase and can potentially offset the entire net investment (including down payment) for high wage earners.

For certain areas annual pest control may be needed for colder areas maybe you run the risk of freezing pipes.

Being abroad adds risk to your file and terms will be effected in some way or another.  

If you currently rent for $2,500 and take the $1,750; you have additional positive cash flow of $750 for your rent situation.Have you thoroughly looked over the capex potential issues? 

Hi Ethan, I would not entertain the idea of getting more money from this tenant in order to potentially increase your cash flow. 

The calculation uses the following formula: Total Rent Potential x 75% ≥ PITI (plus HOA if any).