However, I recently picked up this book by Brandon Turner, Rental Property Investing, just to investigate and educate myself on some basic principles of investing into rental properties and house hacking.

The best choice depends on your investment strategy, risk tolerance, and long-term objectives.

I assumed that we would end up basically owing nothing since depreciation, repairs and non-principle portion of our mortgage payment on the house greatly outstripped the amount paid toward principle.The tax preparer said we had to pay taxes on essentially the entire rental payment since our income was basically at 150k.

Having a clear scope of work, a vetted, licensed and insured contractor, and someone to objectively inspect the work is not a "pain", its how every project should be handled. 

The principles are the same.1.

I've thought of cash for keys, but out of principle, I want it want his record so this does not happen to any other landlord. 

Look at areas with high rental demand, possibilities for capital growth, and properties that fit investment objectives.

However, it's important to be flexible and adjust your strategy according to market trends, competition, and your own objectives.

Establish your investing criteria and objectives, including your risk tolerance, financial objectives, target communities, and property type.

Understanding financial markets, economic principles, and investment analysis will be very beneficial, especially with property valuation, investment analysis, and financial management.