The story is vastly over simplified, but it gives you an idea of what happened.

He is currently asking 150K and rents are $1300 month.I know the owner from church, and am guessing that the place is paid for, and he is selling partly due to simplifying his life as he nears retirement. 

So, the 3% or 8% difference is yours to keep.But saying there's a direct, guaranteed ability to deduct the passive losses against other income, which I have been told (not by Will or Rich nor anyone else here, but by others) is way over simplifying the situation and is just wrong for many people.

How do you simplify the above-mentioned expenses?

This may be over simplified but the way I do driving for dollars is I keep zillow open as I'm driving and save all the homes that show signs of being vacant or run down.

This is the simplified version.As for which market is best?

Any gain left after the depreciation recapture is taxed at capital gain.This is little simplified. 

This simplifies property management and provides legal protections for landlords.Proximity to Los Angeles: Since you already live in Los Angeles, investing in Arizona offers the advantage of being within a manageable distance.

I think you might be over simplifying it a little which can be dangerous.

(OK this is greatly simplified) The point is it starts with Your Offer.