The IRS generally allows deductions for second homes if you use the property for personal use for more than 14 days or 10% of the days it's rented, whichever is greater. 

If we put the home on the market we would lose at least a month rent and utility cost.Some background on the property is that we put 120k towards a down payment at 6.125%.

As far as the other property, my ultimate desire is to build a duplex for rent. 

I decided to keep it as a rental the last second and is currently rented for $2,250.

We currently own two rental properties (details below) and are ourselves renting a place to live in ($2350/month).

We are wondering if it would be worthwhile to buy a home instead of renting. 

Brandon You have to get out of Suffolk County and start looking into other areas where you can still get a good deal and the rents offer a positive cash flow without having to put 30% to 35% down. 

The only way is to rent out room by room.

Can they prove how long it takes to rent a vacant property?

He is month to month so all I would have to do is give him a 30 day notice of rent increase.