I am exiting the rental market here (love living here tho). 

So you can buy a four flat, live in one unit and rent the other three, but you have to live in one unit on the site. 

Live in Florida but own properties in NY.  

I also live in Snohomish County.

I currently live in Butte, Mt but plan on moving to Phoenix, Az for 6 months out of the year.

If you're willing and able, I do recommend the "house hacking" strategy which is just a fancy name for buying a rental property and living in one of the units, because you'll get very favorable financing - an owner-occupied fixed-rate 30-year mortgage.I'd also say, analyze that property as if you won't live there and it's a pure rental, and make sure the property is still cash flow positive if there's a tenant in your unit because then you'll know if it's actually a good investment.And when you analyze it, include payment of a property manager in your #s because if you don't, and doing so would make it go cash flow negative, then you've just bought yourself a job because you literally can't step away from managing it without losing money.

According to a recent study, there are over 35 million able-bodied Americans living on welfare instead of working.

Quote from @Ben Trageser: If you live in your short-term rental (STR) property in a future year after claiming depreciation, depreciation recapture does not occur immediately.

Most of us don't live there. 

The chances that you currently live in a city meeting all these criteria are low.