It sounds like most of your issues were insurance-related, which indicates this is a risky market based on natural disasters or something.

Those might make good rentals...but also there can be extra costs...see if they are in PIDs/PUDs or MUDs that add significant cost to the monthly payment...maybe $100-$200 extra a month.Also $2500 sounds high on rent to me for 1800sqft....I would think more like around $2000/month, but haven't looked in that area lately.I do like Forney....one issue is I don't think there are good demand drivers there. 

Taxpayers perform more than 750 hours of service in real property trades or businesses in which they materially participate.With you not working a W2 job and likely working on these properties full time, it sounds like you have a good chance to qualify.

But things need repaired and replaced.

I’m not my first deal the inspector missed a huge problem with the electrical in the attic where we ended up having to move all the blown in insulation after closing and replace all the electrical to the lights in the whole house.

It sounds like you’re off to a great start with your first fix and flip, and Santa Fe is an exciting market for real estate.

Section 721 of the Internal Revenue code allows an investor to exchange property held for investment or business purposes for shares in a Real Estate Investment Trust (REIT) or an Operating Partnership without triggering a taxable event.Many investors are aware of a 1031 Exchange where an investor must find a replacement property to defer capital gains taxes on the property that was sold.

In the short term, I aim to replace my monthly income from my current entry-level job, I dont make a ton of money so this shouldn't be too difficult.

They will replace it at 18% interest.  

Which sounds like a 95k gain.And yes, when the condo is sold you could opt to do a partial 1031 exchange with those proceeds and keep some for yourself.