Typically the people who arbitrage properties are operating complex's with 10+ units at a time. 

Some people swear by his program.

Type doesn't matter.What gets people confused sometimes are the terms "like kind" and "qualified use". 

I only ask, because most people are not sitting on $400k cash (obviously this is just my example) to effectively buy a new house without a mortgage.  

God bless them, they are often wonderful waiters and hair dressers and service people and . . . .  

People pick rentals based on location and price.    

Get the people who are potentially making the decision to give you more details and specifically what it would take to get it done.

"Best" means different things to different people and Philly is filled with MANY neighborhoods to choose from.

Crazy idea - How about asking your tax professional instead of a bunch of people on this blog that have no clue about if you qualify for RE professional status?

You might also be able to employ a short term rental strategy to increase cashflow-- sporting events, conferences, homecomings, graduation, etc. always attract people to the area.Ask around and try to find people who are investing in Amherst/Northampton and connect with agents in the area to see what's working.