Depreciation typically results in a tax loss.

@Jake Hughes A cost segregation study is a tax strategy that allows property owners to accelerate depreciation on certain parts of a building, resulting in larger tax deductions in the early years of ownership.

Well....should you invest in a city where the people elected a woman with foreclosures, liens, judgements, garnishments, ethical violations from the state ethics board,  misused a city credit card, went three years arrears on her federal taxes all while yelling for other people to pay "  their fair share, " left skeletonized dead bodies hanging over Canal St for months on end covered only by a tarp until the wind blew it off to reveal to our horror her blatant disrespect for human dignity?

A couple of things in regards to saving on taxes by utilizing depreciation correctly.

The contract I could find says the following:```...together with the right of ingress and egress at all times for the purpose of mining, drilling and exploring said land for oil, gas and other minerals, and removing the same therefrom.And said above described land being now under an oil and gas lease originally executed in favor of [Oil Company], Chicago and now held by [Oil Company] it is understood and agreed that this sale is made subject to said lease, but covers and includes of all the oil royalty and gas rental or royalty due and to be paid under the terms of said lease.It is agreed and understood that of the money rentals which may be paid to extend the term within which a well may be begun under the term of said lease is to be paid to the said [purchaser], and in the event that the said above described lease for any reason becomes cancelled or forfeited, then and in that event, the lease interest and all future rental on said land, for oil, gas and mineral privileges shall be owned jointly by [owner] and wife and [purchaser] each owning & interest in all oil, gas and other mineral in and upon said land, together with interest in all future rente.This sale is made for and in consideration of the sum of Ten Dollars, cash in hand paid, the receipt of which is hereby acknowledged.To have and to hold the above described property, together with all and singular the rights and appurtenances thereto in anywise belonging unto the said [owner] heirs and assigns forever, and we do hereby bind ourselves, heirs, executors and administrator to warrant and forever defend all and singular the said property unto the said [purchaser] heir and assignee against every person whomsoever lawfully claiming or to claim the same or any part thereof

And, Alabama has the second lowest propertey taxes in the nation behind Hawaii.

Check into insurance and tax rates in the areas, along with estimated mortgage costs. 

The second of two homes I bought when I sold the rental, I would have bought a more expensive one as the one I got was close to the university and tended to attract students which had higher turn over (though it may also be my local market).I'd also look up how to do a 1031 (I think that is what it's called, I'm not in the US) where you defer capital gains taxes on rentals by buying another within a set period of time.

All this fancy mumbo fha guideline gumbo means is that your projected market rents assuming all units, if it were rented Times 75% need to be greater than what your monthly payment is  (PITIA = principal/interest/taxes/insurance/assessments monthly), other wise FHA will not lend at that loan amount so common solutions to this when rents are too low in your local market are to put more money down payment which defeats the whole purpose of low 3.5% down FHA doesnt it?

https://www.biggerpockets.com/forums/51-tax-legal-issues-con...