We’re property managers based in Redding, CA, and the laws here favor the tenants, making situations like this even trickier.

What's even more frustrating than asking the IRS help desk, is asking a Turbo Tax "Tax Specialist".

Another option is investing in real estate through partnerships or fractional ownership, focusing on properties that yield cash flow or appreciation potential.For long-term growth, consider diversifying into assets such as private equity, tax liens, or even certain types of real estate that offer both capital appreciation and income potential over time.

Even if they do have 20 years experience...how do you know really?  

Tools like AirDNA, Mashvisor, or even Airbnb itself can provide insights into guest demographics.

Your question has been debated between BP tax experts both privately and publicly, for example here: https://www.biggerpockets.com/forums/51/topics/819991-expens...And we ended up where we started: no consensus and no clarity.There have also been court decisions that support my interpretation, even though I personally find these court decisions debatable.

The mortgage payment still has not changed 7 months later even though this was cancelled.

<g> If she is very determined not to have the central heat on she can turn off the service switch at the unit or even turn off the circuit breaker to it.

So - somewhere 2 hours away, or somewhere you like to vacation in, or where all your family lives, or where you plan to move someday.Too many people are trying to do exactly what you're doing - pick a market based on a formula - and they end up buying a random 'cheap' property thousands of miles away, turn it over to people they've never met or even spoken to, and then... lose money.  

Options like conventional loans (3% down), FHA loans (3.5% down), and even no-down-payment options like VA or USDA loans could work for you, depending on your eligibility.