We also have relatively low expenses (personal expenses, mortgage/escrow on other rental property, and escrow on current property) that are around ~$120k/year.

Example 2 - A relatively new real estate investor I met decided to specialize in RV parks in Harris and Montgomery Counties, Texas.  

Always consult with a qualified tax professional before making any tax-related decisions.Depreciation losses will have no effect on your financing options. 

If you adhere strictly to the laws, you will be limited in the services you can offer to your relative compared to what they would get if they listed their property with a licensed agent, and they will get less money for their property working with you than if they hired an agent.

I send letters to almost anyone I can find who is related and those are not.

Tax basis will relate to your filing status and entity structure which is best spoken to by your attorney and CPA.If setting up by yourself, you'd risk anonymity concerns which relate to asset protection.

As many of you can probably relate, this book opened my eyes to the power of the dollar, and it got me interested in real-estate.

How often do you use it personally or let friends/relatives stay? 

With e-filing systems in most county courts, you can DIY file and complete evictions relatively easily, especially if tenant doesn't show up.

Maybe there also a lot to with the rest of your balance sheet as it relates to owning a $2 mil asset.