What about property tax prorations. 

He would also be exposed to liabilities related to the property, such as lawsuits or property damage claims, which could affect his personal assets.

Real Estate Agent uses commission earned on the subject property toward their own down payment when they are also the buyer of that same property (personal residence).

On the flip side, I am in the process of acquiring over $1.5M in defaulted DSCR loans form borrowers who are your age that put 25% down but had no money to fix any of the problems  = lost the renters and walked from the property.

Until now I've focused on distressed single-family and small multi-family properties for rehab into rentals (BRRRR).

If you also have W2 income, then Section 179 income limitation on Schedule C should not matter.Also, whether you take $1k of depreciation or $19k of depreciation, after adding it back you have the exact same income for underwriting purposes, so I'm not sure why you're concerned about a reduced amount of depreciationI don't have a W2-I do receive alimony, and have three rental properties and this business.  

You can't do that if the property is out of state.

Can I ask how many properties you have and how long it’s taking you?

In some cases, after running the numbers, I’ve even faced potential negative returns, causing me to miss out on promising deals here in South Florida.That brings me to my question: I currently own two homes—one is my primary residence, and the other is a rental property.

If I were in your shoes, I’d focus on house hacking in Phoenix by exploring multi-family properties or using the BRRRR strategy with undervalued single-family homes.