@Richard Benjamin Wilhite, @Bill B.makes some good points about loan terms and the strict identification rules for a 1031 exchange.I would add from a tax mitigation perspective that buying the largest property possible will give you the greatest amount of cost segregation possibility and at the lowest cost since it would be one study rather than several. 

Markets with sub 8% cap rates, generally the cash you need to raise is going to be true equity and since the cash flow would be too tight from a DSCR perspective, you have to put down way more than 20%. 

I've got a few hundred clients in your exact same scenario, they live in markets where rentals don't make sense whether it be from a price or laws perspective.

I have a similar perspective, as I am right on your heels with the same decision, so I'm naturally inspired. 

How long must you wait before being able to rent out a primary residence property from a lending perspective?

Let me address your questions and provide insight from a lender's perspective:1.

Perhaps some more than others, but each one brings a unique perspective.

If you’re still in the game, has your perspective on neighborhoods like Bay Park or Clairemont changed?

Obviously this depends on whether Local, Esq. is willing to do it (and whether there is a state-specific bar requirement just for this type of work), but I want an outside perspective first.Thanks,Looking in Baltimore

Will the capital gains in this scenario be considered passive income from an IRS perspective ?