Yeah, as an engineer by trade, I have a tendency to make things more complex than they need to be because in my world, if you don't have a good foundation to build on, you end up doing a lot of rework, which I'd like to avoid in the REI world.I understand that I WILL make mistakes (and hopefully learn from them), I'd like to learn where other people had to do re-work and try to avoid that at all costs.I'll see if I can simplify my plan somewhat. :)

I will make it as simplified as possible since you seem like a newb. depreciation is an interest free loan from the govt until you sell. like those mentioned above, there are exceptions, etc.but it is definitely not a *****!

@Daniel Ortiz - those loans don't exist in Canada unless you're a first time homebuyer.  5% for owner occupied first time homebuyer, 10% for owner occupied under 500K, otherwise 20% (simplified).

You can simplify everything by just going 50/50 on everything.

This will simplify eviction when they stop paying.You must thoroughly assess their ability to pay and, assuming the are not eligible for bank financing, may also have to set them up with credit management.

@Jeremy Woods maybe I’m over simplifying, but that’s the sellers problem.

Also, trying to simplify my life and it seems like the 1031 would add some degree of complication in the future.I've been hammered by taxes for the last server years and thinking of retiring from my regular job just to get in a lower bracket - then manage all my investments more efficiently.

That plan has included simplifying my financial situation to the point that I am no longer dependent on a large salary and the risk of making the jump into real estate is more tolerable. 

This is very simplified because there are things like taxes and insurance ect that you would have to factor in.

You have to simplify to make things a little easier.