@Jonathan Rivera, I'm not too familiar with NJ but what I do know is that it has very distinct regions.

I see the IRS regs about rental activities being defined as passive, but I don't see anything about a lower rate.I just see that this "passive activity" distinction subjects us to "passive activity loss rules", which limit our ability to offset other types of income with net passive losses.But even that limitation is negated for us because we fall into the "active participation" exception, so we can offset our regular earned taxable income dollar-for-dollar with losses from our rental (if I understand the regs correctly).

This is why I like treating each part -- investment and primary residence -- as a distinct purchase even if there's only one closing and one contract. 

How are people responding to (Largest Deterrent Here).As I was saying, I have an investor who is going to be making a written offer so I wanted to give you a heads up. 

     The Lehigh valley area has had enormous growth --the largest area in the US for warehousing and transportation--largest growth in Jobs from all the warehouse which makes this a great are for rentals.  

Every area will have its own distinction....like NY/Boston/Chicago etc there may be A properties that are 100+ years old and there may also be brand new to market assets.

And honestly, the approach I take towards living, if your mortgage is paid off, you are pretty close to being wealthy in my mind, since it is by the largest expense most people have.  

This can happen with years of compounded appreciation or years of significant cash flow.  2) if you purchase fixed rate (or undefeated) the typically largest expense is fixed.  

But before you rush your decision, you need to realize one critical distinction: treating this transaction as a business allows you to deduct all business expenses against this income.

The largest was a 6unit & that took some time as each unit was rehabbed.