Also, cash flow is not constant ... it tends to follow appreciation because rent increases are driven by similar supply and demand fundamentals as price, yet most other expenses do not scale as such.

That property is 100% comp driven.

My first venture into RE some 10 years ago was driven primarily by passion and intuition, where I went OOS and got busted, learned my lesson, came back to CA, bought in SF and spent the next 5 years subsidizing rental loss from my w-2 income....

I understand that I would have to file my $20000 plus any other income that I got under my personal income taxes from which I can have deductions such as the mileages driven. 

If you find a good property and the right opportunity, you'll be so much more driven to hit those phones and make 20+ calls a day.

Thank you BP for creating this great community of like-minded and driven people!

Since then, we have attended 2 trustee auctions, a couple BP webinars and listened to over 20 more podcasts (eventually we will be caught up to current), driven by dozens of MLS homes and started playing with the real estate investment calculators.

Have you driven through the neighbourhood?

Your property selection (nice primary residence and another A class rental) don't match a cash-flow driven goal.  

I find closing in attorney driven states to be most frustrating at times.. disjointed and absolute nightmares sometimes.