A cash purchase, added to my portfolio, reduces my levergage ratio on my real estate portfolio, but does not bring it to zero of course as I am not paying off existing low rate mortgages on rentals. 

At closing, the accumulated credit is applied to reduce the purchase price, eliminating the liability.

Try to reduce the number of problems you can think of to a manageable level, or instead of a 5 bedroom place maybe go a little smaller with a 4 or 3 bedroom that is generally more manageable and not pack people in like sardines.  

Vehicle expenses are one of the major costs to consider, so living nearby helps reduce those expenses and saves you time.

@Andy LanyiGood comments on how to reduce tax bill. 

.✅ Investors - Keep detailed records of ALL rental property expenses to reduce your taxable income - helping your CPA spot additional tax saving opportunities.Imperative to use a CPA who is well versed in Real Estate tax code.My CPA is just that - DM me to get his contact information....

I understand your concerns and anxiety about getting started as an OOS investor when trying to choose a good market.

@Saika Maeda Permitting the ADU allows you to claim depreciation, operating expenses, and other tax deductions, potentially reducing your taxable rental income.

If you have rental(s) or plan to get one and want to decide between long/mid and short-term rental strategies taxes do play a roll if you have high W2 income you want to try and reduce you tax burden. 

Quote from @Christopher Stevens: Does anyone know how we can write this investment off to help reduce our tax liability?