I mention to them that I would be interested in their house if they ever think of selling it.

One mistake could extend the tenant's stay for months without any income, not to mention the stress it could cause.

Quote from @Jake Hughes: Called my CPA and they mentioned that aside from tax write offs we can do a cost segregation study on one of my properties.

*Please note: As Dave mentioned, not all REITs allow for ongoing depreciation, but some do.

Like others mentioned sub $150-180k doesn't seem worth it, especially in blue states. 

Just in case anyone is wondering I am pursuing the REO referral program I had mentioned.

Each renter profile comes with its own booking patterns and renewal needs, as you mentioned... but we find that a 30day rental period with option to renew and automated reminders to the renter works great!

The tax return you have should have a 'carry-over' schedule providing details as to what is carried forward to the next year, whether it be an NOL or a capital loss carryforward.As Michael mentioned above, there is no carrybacks at the moment.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesWe recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

Since you mentioned that there is no sewer or water, they can inform you on septic performance.