Prior-year losses can’t offset W-2 income but can be used for capital gains or future rental income.For audit risk, high earners using REPS face increased scrutiny, so be prepared with detailed records.For material participation, keep a time log with tasks, dates, and hours spent on rental activities like tenant management, repairs, and bookkeeping.

We are both physicians and relatively intelligent humanoids, but without knowing what you don't know, it seems a difficult task. 

It's awesome you are considering where you want to be and flexible with that.I'd look at your high growth markets, where there is a diversified economy, job growth, income growth, population growth, business friendly environment. 

East Coast and Gulf Coast ports after members of the International Longshoremen’s Association, or ILA, began walking off the job after 12:01 a.m.

If you really want to learn the business of investing, get a job in real estate.

The Small & Mighty Investor: How to Invest in Rentals For Lifestyle, For "Enough," and Not Another Job with @Chad Carson

We might move back to the East Coast in 4-5 years, so I'm looking for investments that can work well as a primary residence now and a rental property later.Income: Both my girlfriend and I have solid tech salaries (150k+ each).Current Portfolio: I don’t currently own any rental properties.Goal & Long Term Plan: I don’t love my current job so like many of you, I would like to create enough passive income through rental properties to have financial freedom and be able to work business ideas or side projects.

Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy).

Similar to you, I wanted to find somewhere less expensive, still close to the Bay Area (drivable), but without the high property taxes, more favorable tenant/landlord laws, no state income tax, and consistent job/population growth. 

We keep everyone in the loop all throughout the process.To stay on track, we maintain a comprehensive checklist that covers all the tasks involved in closing a deal.