We are operating on the assumption that Lakewood market is pretty matured at this time.All thoughts welcome!

I also assume from your profile that you live either in TX or in AZ, and both of them are community property states which matters.If all of my assumptions are correct, there are no tax consequences.

@Abel Eskinder since you're out of the country, you'll probably want to give some thought to our copy & paste info below:-------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Based on your assumption that you and your spouse file jointly, I agree with the others in the comments.

I know certain things like insurance, etc. can't be deducted.Are there are big missteps I should make sure I'm not making in my assumptions/landmines I shouldn't step on to make sure I can deduct these expenses and receive the right rebates in my tax returns at the end of the year?

@Michael Rostwhenever anyone says 'great cash flow,' I don't even need to know what state or city it's in - if it's a long term rental with conventional financing at today's interest rates, it's not happening unless unrealistic assumptions are being made like zero repairs, zero capex, zero vacancy ever, zero turnover ever, and 8% rent growth forever.post the numbers here if you want a review.

I would like to learn of any potential red flags in the assumptions but most importantly just go over the deal with a fine-tooth comb to confirm my own understanding of the deal. 

I work for General Dynamics Electric Boat which has decades long contracts with the US government and the turnover rate is relatively high in the company so my thoughts are if I could choose a place that is within commute distance there and within the price range of the average employee that maybe that could be a great idea but I want to know if people think that is too much of an assumption and risk to make?

@Renee CossRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Some other copy & paste advice:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?