There are so many factors to this questions, but to get a general idea if it makes sense financially.

On your first scenario at $145k value @ 75% LTV, you've got $32k to play with BEFORE fees.

The 1099 is issued to you and the IRS to make sure that you are reporting rental income on your tax return.I would use the annual property management statement to report the income and expenses per property.The property management statement will likely include property management fees charged to you and repairs made on your behalf.

@Joe VilleneuveHow do you come up with 20% DP amount to factor in the calculation when we are still trying to figure out the offer?

@Gerald Maczuga, unfortunately your gain from the sale of the property will factor in and put you over that $94K limit. 

Hard to give a range as it depends on a variety of factors.  

Weak- Cashflow is most important factor, everything else followsStrong- Potential appreciation is most important factor, everything else follows. 

Most states do not factor in losses from other states when calculating their taxable income.However, yon't think you lost out on the state where you have a loss. that state will normally treat that as a loss that you can use in the future when you sell the property or have rental income.

That being said, I did get hit with a late fee for property taxes 2 days after I closed with DR Horton’s title company (which I was also forced to use) 

Hi Marc, it can depend upon lot of factors like exact location, basement, garage, outdoor space, finishes etc.In general, right now, I see house going in range of 350k-400K.