This home has been highly operational with high rates of occupancy, bringing in anywhere from $500-$1500 a month in overage beyond our monthly expenses.

Are there other ways to avoid the high tax on these gains? 

Highly recommend.

This home has been highly operational with high rates of occupancy, bringing in anywhere from $500-$1500 a month in overage beyond our monthly expenses.

I have used both TSP loan and HELOC to purchase investment...I certainly thought the ROI from real estate was better than relying on highly fluctuating stock market. 

I would set the cleaning fee for at least what it costs If you feel the cleaning fee is high get some other quotes 

I do have a fairly high percentage of my net worth (35%) in the PPR fund. 

We've essentially ruled out investing in our local community because we can't seem to find a good deal (we live about 1.5 hours north of NYC, so purchase prices are very high), so we are considering (1) investing out of state; or (2) investing in some northern NY localities (Syracuse, Albany, Rochester, etc.). 

.✔ Networking: Target high-net-worth individuals (HNWI), real estate groups, and doctors/lawyers/tech professionals looking for passive cash flow.3.

I do have a mortgage currently in my name that I am in the process of having assumed, so currently my DTI is very high because of this.