General note ... there are dozens - maybe hundreds - of different on-site wastewater system system types, from basic "conventional" septic systems with a septic tank and gravity driven leach lines to complete package treatment systems (like a miniature municipal wastewater treatment plant).

The idea behind this preferential tax treatment is to not penalize an individual with higher taxes if they had to sell their home to move for a job or other outstanding circumstances.

The young woman applicant works in Melbourne at a treatment center, makes decent money but also has documented trust fund income. 

After the 5 day period expired, we finally got them on the phone and received a long story about how the man lost his job and was diagnosed with cancer and they wanted to move out on 12/23 to go back with his family in another city.

I think MA gets a bad rap as “tenant friendly”—most of the refs are simply about fair treatment, but in any case NH has a more “landlord friendly” reputation.

You also need to make sure you use the second house enough for it to qualify as a personal vacation retreat.Go beyond these two holdings, and you'll find the tax treatment of real estate decidedly different.When you own rental property, the IRS classifies that as a passive investment.In general, the tax code views passive activities as those in which you do not, in the words of the IRS, "materially participate" in the investment.

I've had bad and dishonest PMs that cost me well over 100% with under the table repair kick backs, selecting bad tenants that don't pay and trash the place, workmen stealing anything not bolted down like window treatments, etc., and mediocre ones who regularly ran 25% when it is all said and done.