I have supplemental insurance so I am of the mindset that they should get rid of this bogus insurance and lower my host fees..

Now I have two vacancies and lower rents than when we started. 

Unlike a mortgage the interest on your loan will not be tax deductible.

@Nicholas Haubner Contact Montvale's tax assessor and building department to see it is currently classified. 

Would the federal tax liability be $140k at year 5 for the sale, with long term capital gains (ignoring any Net Investment Income Tax)?

I highly suggest you use our marketplaces to find trusted, investor-friendly team members: Tax Pro finder: https://www.biggerpockets.com/business/finder/tax-and-financ...Lender finder: https://www.biggerpockets.com/business/finder/lendersProperty manager finder (if you go that route and don't self manage): https://www.biggerpockets.com/business/finder/property-manag...

We keep good books, have legitimate and good tax returns and can show tangible real income on these units.

For instance, property tax & insurance expenses.

Smaller house cost, lower loan costs.

It will also allow you to pull some cash out if you have the equity and for tax purposes.You can have two VA loans at the same time but having two means that the second home may not qualify for 100%.