I am not sure I follow the logic here.Depreciation expense is great in that it is a non-cash tax expense in the year of the deduction.If the taxpayer is in the top bracket of 37%, he is getting a savings of 37%.Now if he decides to sell the property and gets his with depreciation recapture, it is capped at 25%Granted - this scenario is assuming the taxpayer is in the top bracket.

This treatment will be familiar to taxpayers who have been subject to alternative minimum tax (AMT) in the past, received no tax benefit for SALT deductions, and were able to exclude AMT year SALT refunds from taxable income.I encourage all of you to work with your CPAs to determine correct treatment on your tax returns if you are capped out on SALT for 2018 but are receiving a refund on your state tax return. 

This is not a good option to reduce tax payments on 120k.

Call me callous, but this is a waste of tax payer money. 

In order to not have to spend 750 hours per property, the taxpayer has the group those activities into one.

If you're a cash method taxpayer (most individuals are), you generally can't take a bad debt deduction for unpaid salaries, wages, rents, fees, interests, dividends, and similar items.”

Just some of the things I worry about are, no cause evictions, restricted back ground checks, year long lease that will auto convert to a month to month(tenant decides and is in control), service animal abuse and the gag order that comes with it, relocation fees(min one month rent), one year statue for tenant to sue landlord of which requires a min of three month rent paid to tenant along with any fees or actual damages, free legal aid and counsel for renters paid by taxpayers, and a list of existing red tape.

If the taxpayer redeems, they will have to reimburse you for HOA dues plus 12% per year interest.

I think the point you made about "The overall return of a leveraged investment should out-perform a similar all cash investment made with an IRA." is a key here, as well as where the tax payment money comes from.and I second Oleg's, request for a $100k example. 

Seems to me that's a taxpayer burden and not a property burden, but I don't know.At any rate, assuming this is correct, my plan is to hire a kid or two to manage properties as I get older.