Hi @Steven KochI don't know the area at all but the numbers you provided would indicate this is likely a loosing proposition as a rental.   

The property may stagnant in value or worse case scenario may loose in value.

Filing as single, unmarried.I believe after 3 yrs (2/5 rule) i may loose my 250 tax exemption, but do i retain some type or amount of tax exemption at the amount the property is worth at the time of the conversion to a rental, ie: Is my new tax base the value of the home at the time of conversion?

One thing leads to another and you are loosing money.  

I'm new to real-estate investing and I'm trying to understand the difference between the different forms of investingI want to play this RE game for the long-term and have the portfolio benefit from appreciation, depreciation, tax-free cashing-out, leverage using low interest rates, cashflow to cover the expenses.Here's my understanding of eachDirect RE- Full ownership / control of when to sell- Can leverage & deleverage as you want- Work involved to maintain property; But can hire a property manager to assist- Can provide cashflow to cover expenses + CoC return- Provides hard collateral / security for the money you put in- Tax benefits - depreciation, phantom appreciation, interest deduction Majority Partnership- Form partnership where you are majority owner with 2+ other people (with more capital input) - Can provide benefits of direct RE on controlSyndication- Passive investor / accredited - Less work- Access to commercial RE which you can't get otherwise- No security / collateral for your stake; Can loose everything- No different from investing in a business- Already leveraged returns; You don't control how asset is structured- Depreciation benefit passed through K1; But no benefit of 1031Crowdfunding- Low minimums- Already leveraged returns- Can be equity or debt based; Equity stake has some tax benefits through K1- No security / collateral and everything can disappear without recourseIs this correct? 

The only exception would be if you found a tenant sooner, then you are legally required to cut the former tenant loose at that point.

The last thing I want to do is loose someone else's money.

I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.One thing to note when looking at the individual markets, you can make or loose money in any market.

If you let your cash get low all heck seems to break loose. 

I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.One thing to note when looking at the individual markets, you can make or loose money in any market.