Further, there is massive misconceptions about the use of RMLOs as a circumvention to licensing and compliance.  

Why do you have a misconception this business is easy?

All your misconceptions have been addressed earlier in the thread.

BEST: I love real estate and investing.LEAST: Ignorant people (especially realtors)Common Misconception: Taking a real estate course, getting your license, and selling real estate for most of your life allows you to know anything and everything about investment real estate.You should probably take some time to talk with a broker or someone form the real estate commission in your area for more information, but I hope this helps a little.

@Dan Kistler @Rob Malda  That is a common misconception.  

This misconception comes up quite frequently in my conversations with out of state investors.

It is a widely held misconception that Dayton does not appreciate. 

You move out of your current home and secure an FHA loan (you dont actually have to be a first time buyer to get one.... its a common misconception)  You then get a multifamily and move into one of the units and rent your home now. 

It's a fairly common misconception that landlords will give a good reference for the sake of getting the bad tenant out.

So if you buy a property for $100K, incur $20K of depreciation and then sell for $120K, you would pay the capital gains on $120K - $100K + $20K = $40K.I think a lot of people have a misconception that depreciation is a huge money maker/saver...in most cases it is more or less an interest free loan until you sell the property.