They lower taxable income for federal taxes but not for FICA.However, employer contributions made by the S-Corp are not subject to FICA and count as a business expense.Make sure your W-2 correctly reports wages, deferrals, and FICA wages.

I was reading up about it, and saw that the cons of oil heating include needing to top up the oil supply, lower efficiency (than gas and electric), and potential leaking of tanks leading to environmental issues.Is anyone familiar with oil heated homes?

Depreciation lowers taxable income now but is subject to recapture at a maximum 25% rate when the property is sold.

I am confused, how there are options available today that does not comply with city rules (ceiling lower than 7ft)?

For a single property, a strong umbrella insurance policy may offer sufficient protection at a lower cost.

I used the lower of rent amounts for analysis. https://www.biggerpockets.com/analysis/rentals/ee5f6928-93ce... is link to the BP Calculation on it.

I've been here since the beginning, or real close to, and am happy to help you navigate and learn the site.As for where to invest, it depends on your goals, your tolerance for risk, and how much control you want.  

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I have lowered the price significantly this year. 

The lower unit is a basement/guest suite.