I have a w-2 income and own three properties, all long term rentals, that I've had for a few years.

Purchase price: $350,000 Cash invested: $10,000 Sale price: $435,000 Primary residence converted to a rental after 2 years.

Quote from @Quan Pham: I'll give you the easy answer: sell.If you were fired up about owning an investment, I would recommend keeping the house as a rental.

I rent through Furnished Finder which has a standard rental contract. 

Realtors typically pre-screen rental clients to make sure their time is not going to be wasted.

I have Section 8 rentals in my portfolio but I do recommend connecting with a property manager who specializes in Section 8 rentals - they'll know all the specific requirements, inspections, and paperwork needed. 

To achieve REPS status you need to be actively involved in your rentals.  

Is this for mid term rentals?

You've done well with your Class A rental, generating $500/mo in cash flow, this adds up over time.

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.