Serious consequences when dealing with foreclosures, both local and federal. 

As for finding a contractor, asking local investors for recommendations is a great start.

Look up local investors on social media and follow them and comment and like their posts so they get used to seeing your name.

A good property manager can help with tenant screening, enforce lease terms, and handle evictions more efficiently if it comes to that.Require a Larger Security Deposit: Within the bounds of local regulations, a larger deposit can provide a cushion in case of damage or unpaid rent.Consider Rent Guarantee Insurance: Some companies offer insurance products that can cover lost rent in case of tenant default.

Newton's law of tax: What goes down must come up.Everyone enjoys the sweet benefits of bonus depreciation, but what happens when you sell?

I'd ask for referrals, and reach out to some local folks and see what is working and not.Best of luck!

The most sure path for local RE investors seems to be with a near term exit. 

@Nick AmYou also may want to consider other matters besides taxes, such as state law requirements for management companies and serving as a property manager, especially with a tiered structure.

I'm local and looking to see if anyone is nearby and wondering some things like how well BRRRR might work in our market (my feeling is not as well as others).Look forward to getting to know you!

(Hint - go on VRBO and see what your local competition is charging). 2) How much do you intend to put down?