I have done exactly that in the past year.The IRS is specific in terms of business deductions: you have to show that you are in business to make money - so that the IRS can tax you on the profits.

The price point at which you would be able to afford these properties means that average rent would be roughly 5-600 per unit, which attracts low quality tenants, and means that neglected repairs and capex items can quickly eat into any profits that you may think you are getting. 

This allows us to stay within a reasonable budget while also gaining experience to move on to larger projects while also continuing to pay down debt.

I want to make profit from renting them out.

[Regarding your tax minimization questions, I'll just say: I only recommend Investments that would have you making a PROFIT!

The short answer is no,don't do it.You don't seem to be in the right mindset to become a member of my profession which is exactly what it is,a profession and not a hobby to pick up or put away at will.My profession requires lots of time devoted to learning both in and out of the classroom for at least 6 months to earn a license and the follow up sales training at the brokerage.It is not cheap either to get started with all the fees involved.From what you are describing about your personal life,family demands,and interests desired to pursue,I would concentrate on learning about investing in your spare time.Learn how to evaluate property for potential profits after repairs are done.Join an investment club and surround yourself with successful people who have already been through the process.Learn about hard money,gap funding,and what it takes to get the money you need when you need it.

There are a few new neighborhood developments in my area in good locations close to schools and larger well established neighborhoods.

I know I'm a larger apartment complex they expect the owner to deal with it.

I will reinvest my profits so that I can get my income and wealth to that level and beyond.

Which Philadelphia neighborhoods should I be looking in to make a profit and also not have to wait long to sell.