Depreciation helps reduce your income exposed to taxes, making income from real estate more attractive than w-2 income of the same amount (dollar for dollar).

As PM's we're exposed to the good and the bad... and that includes BOTH Tenants and Owners.

What are the steps I need to follow to make sure I am doing this correctly without exposing myself to legal challenges?

Tuckpointing will be required, as mortar can deteriorate due to vines growing into it, water getting into cracks and freezing, TV antenna masts mounted to Chimneys, or the side of the building and flexing in the wind, loosening the bricks it is attached to.Wood needs to be painted to keep it from getting exposed to the weather.

Not owning your rentals through an LLC exposes you to more risk, even if you have an insurance policy on rentals.However, as a new investor, you may encounter some challenges and opportunities leveraging the LLC.

I enjoy duplexes-quadplexes but find those more investment-esque criteria on the turn, so I won't expose myself too to many of those unless it's in a great, great area. 

I realize investors like to get into forum chatter and expose what they think they know, but you need to speak to your lenders as to what they allow and what they may be willing to do, but the basic rule mentioned is correct, the lower of the purchase/cost or the appraised value.

No way I would have someone in my STR with us footing the power, propane etc for 90 days.

Are they doing everything possible to expose properties to the broadest possible market?

Hi agree with @John Underwood Even if our insurance allows it you are still exposed.