Quote from @Michael Overall:I understand the utilities will go to basis, on the interest is it able to be yearly deducted based off the conversation you referenced if using form 4952According to one of my colleagues on that thread - yes.According to court - no.

I don't invest in FL, so I don't know local laws, but find a real estate attorney that does and have a conversation.

@Kyle Carter, The strategy you're looking at would be what is called a "consolidation exchange". followed by a conversion to your primary residence. 

And IMHO, the prices are dropping big time (on avg. 10K/month...houses that were above 300K a year ago are not selling at 250K now) and the available rentals saturation is worse than I seen during summer season (with rents dropping from 1$-1.08/sqft to 0.8$/sqft and very little contacts and applications...just go in Zillow and look how many rentals are on the market now in Kyle, New Braunfels or Converse). 

For me, it wasn't a book that got me into this but it was a conversation I had with a client while I was a financial advisor working for Merrill Lynch.

If you think you can find a higher quality tenant, then that is a different conversation entirely. 

The first conversation that needs to be had is with the contractor to figure out why the previous agreement is not being honored. 

Have a frank conversation with the property manager. 

Live off of equity as you sell or live off cashflow.

I normally advise that people start a business as a sole propeitor in their first year.If it is successful and something you want to continue, then have a conversation regarding entities.