(Except something like 1/2 of a duplex where the rental 1/2 is worth as much as your exchange.).

You've done well with your Class A rental, generating $500/mo in cash flow, this adds up over time.

I have a w-2 income and own three properties, all long term rentals, that I've had for a few years.

Insurance costs have been crushing cashflow on a lot of rentals as well - I've seen HOI quotes on $200k-300k houses come in as much as $200.00/month over expectations.

5 tips i should keep in my mind when buying  rental property? 

Quote from @Ben Trageser: If you live in your short-term rental (STR) property in a future year after claiming depreciation, depreciation recapture does not occur immediately.

So you can have section 179 losses for your rental even if the rental isn't generating positive taxable income, as long as you have other active income. 

Great points, ZharaBirmingham has relatively steady and diverse rental demand, and I’ve seen many investors I work with have success with C/B class buy-and-holds.Location is key—areas near UAB, major employers, and popular suburbs tend to have the strongest rental demand, while C/D class markets offer solid affordable housing and Section 8 opportunities.

Your primary has an incredibly low interest rate, and your rental (I hope) is getting positive CF, which means your tenant is paying it off for you. 

@Jordan Miller most Class A & B rental properties bought since 2021 really don't cashflow from day one.Class B will take 1-3 years to start showing cashflow.Class A, 3-5 years.Current investors keep making the mistake of looking back at deals from 5-10 years ago when prices & interest rates were both a lot lower, but NOT rental rates.