More important question now is: How much equity does each home have now?

They also have the ports (or in the case of D.C. the government) which means they will continue to be very important economically for a long time.I invest in Rochester, NY because I happen to live there, but when Kodak went "under" and Xerox moved there was no appreciation for almost 20 years. 

Keep in mind the other homes on the market may all be over-priced at the moment, which is why it's important to watch the market regularly and build a strong sense of what it's doing.

In-App MessagingHow important is a tenant portal for you?

It's also important to note that the percentage of bonus depreciation that your property is eligible for is based on the year it was placed into service and not the current tax year.

I think its important to note that "personal use" also includes your family members or anyone else that uses the property at less than a fair rental price.

Verifying last 2 years of rental history very important!

I wanted to share the financials after 3 years, and demonstrate what three years of real estate investing can achiev3 Bed/1 Ba Single Family Pro-Forma:Year 1 (2021)Income:Rent: $1,200.00Expenses:Mortgage: $509.95Taxes: $119.10Insurance: $43.84Cap Ex: $60Repairs/Maintenance: $60Vacancy: $60Monthly Cashflow:$347.11/mo or $4,165.32/yrYear 3 (2024)Income:Rent: $1,300.00Additional Pet Rent: $75Expenses:Mortgage: $509.95Taxes: $155.43Insurance: $53.03Cap Ex: $68.75Repairs/Maintenance: $68.75Vacancy: $58.75Monthly Cashflow:$450/mo or $5,400/yr (Total/Not 50/50 %)Total Equity: $37,473.88-Principal Equity: $7,959.62I have learned a lot about the systems needed in place to run a rental property, and how important picking the right tenant is. 

As already mentioned in the responses above, figuring out your break even point (how many months it will take you) will be important for determining whether to move forward with that or not.  

The most important thing is to set boundaries with your tenants so they are not knocking on your door every time they have a question.