We are not currently living in unit 2 and have not changed our status to homesteading.

As far as your loan options, discuss that "Solely" with a Lender, as they will address all of the requirements including your self employment status and your current lease arrangement and how they affect qualifying for a loan. 

I am brand new to all of this and fully acknowledge my rookie status and near-total ignorance.

No social security tax, no Federal income tax or state income tax. 

Also given its investment status, I'm not sure that lower than a 5% interest Rate is likely.

@Bruce HardingIf you are referring to using your 401k to fund your own business, the existing S-corp would need to revoke S-corp. status, as the ROBS 401k only works with a C-corporation structure.

There social standards and social skills do not warrant "nice".This has been tried and failed many times with investors walking away wondering how tenants can be so irresponsible and so destructive.

It's not as slanted as they make you think it is.Screening tenants should include a current or most recent landlord reference and a confidentiality release for the state police social worker. 

I am looking to learn as much as possible and assemble a team so that I can invest out of state in the Connecticut market by the end of this year.Some background on me: I am 25 and currently operate a Social Media Management company where I build my client's Social Media accounts.

Without RE pro status, If your AGI is below 100k, you can deduct 25k in a loss and the deduction phased out and is completely gone after 150k.