Maybe put some of that into a money market account or the stock market, so if an HVAC does go out in 2 months you can pull out $4-8k to replace it (depending on size, location, etc). 

It can generate better returns, or at least more predictable returns than other asset classes like stocks, bonds, crypto, and other alternatives. 

@Drago Stanimirovic thank you, and you are right I will probably do cost segregation studies at some point, but so far I have still been able to get to a loss on my taxes using the straight line 27.5 year depreciation schedules, I will probably do the cost segregation studies once I can't show a loss anymore, which will happen at some point as the rents increase and the amortization schedules shift to more principle and less interest.

Some call the stock market a representation of human sentiment in real time, and I imagine the real estate market is not too different.

Think of this similar to how you would invest in Apple stock.

Hopefully people will quit chasing what was a shiny object.Kinda like people buying a stock at its peak only hang onto it too long and lose more money.  

While not in TN specifically, I have assisted clients do as you have described: live in a property as a principal residence for 2 years, rent it out for 3 years, then sell.Based on the situation described, you would appear to be eligible for the MFJ joint exclusion on principle residence on your 90% share.However, in order to retain that ability, the house will very likely need to be sold (ie, sale closed, not just under contract) by the end of this month. 

There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

And finally they want success in real estate investing skipping the necessary years of experience, capital accumulation and mastering  lessons regarding real estate principles, law, and finance, by paying a “mentor” (guru) for a 3 day workshop and continual “mentoring”.  

Verification of income the property generatesi'm probably missing something with regards to due diligence, but once that is complete and you have an agreement in principle on the seller financing terms have an attorney review before signing on the dottled line