My question is- am I better off continuing to save and buy something bigger/better later down the road OR do I jump into this as a temporary primary residence and future long term rental? 

When I sell my house, does the basis decrease by $10000  or $5000 every year?

I think most of the independent, smaller landlords operating in C/C- areas are probably a bit more willing to work with tenants having temporary problems to avoid evictions and skips and as a result may have lower eviction rates.

Obviously a 30 year payment plan would decrease the monthly amount. about 200$ if I am figuring correctly.

The market has seen a lot of national hedge fund investors that are buying up markets which will decrease available inventory and increase property value. 

They should check if they are insolvent or speak to their CPA about other ways to decrease tax liabilities if they have them.

The boot is treated as passive income and you will get to deduct the losses.On top of that. 1)First, see if you can find a way to decrease your AGI below 150 in you are on the borderline.

But I'll be coming down to Mobile, AL in the next month for a few temporary duties and plan on touring properties while I'm in town.

You have a temporary problem getting the financing you need as an owner occupied home.

AirBnb has been something I've thought about but just not sure since it's temporary.