Thank you in advance and I look forward to connecting with you :) I’d at least consider taking that 40k and putting 10% and house hacking in pg county, Bowie, Fort Washington and even some parts of temple hills can be pretty nice (if boring) and some what affordable at least compared to the rest of the dmv, not obviously it’s not gonna have the nightlife of Arlington which depending on your situation could be a draw back.

PG County, Bmore city (not county), montgomery county has some of the highest property tax.

I may write a blog post about how to survive the results of a 52 pg inspection report with a first-time, unrepresented buyer on a house that needs a roof next year, a water heater and has lead paint on backside of the facia. 

Because of this, you have just opened up 1 or more slots available for additional Fannie Mae financing.

With respect to my own reading:Q1: It seems very clear that "outstanding debt / basis = UBTI" is the proper formula.Q2: I agree with you.Q3: Pub 598 seems fairly clear that depreciation is allowed in proportion to the debt-financed portion (see pg. 18).

While the seasonality has never been as great in PG as most of the rest of SWFL, it could still work to your benefit in helping you maximize resale by renting the houses and then next year when the snowbirds fly into town look at your portfolio and decide which ones to move if any.Unfortunately, paying down debt on property you own is not an option with the 1031 exchange.  

I agree house hacking a 4 plex to start with minimum down is the Highest and best use of your FHA loan slot..  

Half of them don't show up typically, but at least I'm not sitting around the property waiting for the next 30 min time slot to come.

(easier for them to track you down and drag you to court for your PG if you default.) 

It's a shot in the dark and if someone else is paying I would slot up to 7 years owned.