Hey Arturo,Some usual pros; Can be below market value, Can be move in ready, Some usual cons; May need tons of rehab work, Might be bid up to above market value, Might be a common foreclosure area.These are a few.

The IRS says there is "imputed interest" on a loan if the interest rate is below what they consider an acceptable minimum interest rate. 

I purchased many, many properties at retail until I was lucky enough to get one below retail value.For a first property, house hack in a desirable area near a major city, 1% rent to value is pretty good these days and that seems like where you are.

If that is below what you will expect you need to find a market that meets your criteria 

We live below our means, and send extra to the principal to get it paid down quickly so we have more buying power.

@John Minerick, I mean forms such as this below for Washington State, for examplepremiertrustrealty.com/virtualoffice_files/28_CondominiumPSA.pdf

@Rudy Manna The Jacksonville market is operating at a 3.1% unemployment rate, well below the national average.

My questions below.1.

The property is built on the side of a hill with panoramic views of below.

The boot is treated as passive income and you will get to deduct the losses.On top of that. 1)First, see if you can find a way to decrease your AGI below 150 in you are on the borderline.