Problem is only "RE pros" get to do it.There are 3 income classifications in the US - Active, Portfolio, and PassiveActive income is income derived from your job, or normal trade or business.Portfolio income is derived from bank instruments - stocks, bonds, etc.Passive income is income earned from investments.Active losses can wipe out both passive and portfolio income, but it doesn't work the other way around.Portfolio (capital) losses are limited to $3,000 annually.Passive losses can only be offset by passive gains.Real estate rental income by its nature is deemed passive per IRC Sec 469One way to get around it is to become a pro - spend more than 750 hours or 1/2 your time in real estate.But most folks aren't real estate pros.

If I relied on AirDNA I would not be buying.

(So if the deal fell through I would have time to list 3 other properties I might buy.)Good luck. 1031’s are an insane tax advantage and Dave is very good at what he does. 

So on a 12 unit, I would keep an operating cushion of roughly 24-30k. 

I think with your faith-based parameters, turnkey would be the safest option as long as paying for property management is ok.

Where would you consider C/D neighborhoods there?

And I really don't need to be lectured, I know I know I know.

Don't be afraid to negotiate, particularly if you have a lot of rentals.4.

My wife and I can cover $75,000 or so, but we would need a loan for the rest until we can get a SBA 7a after closing.

All else being equal, lower mortgage rates reduce the cost of ownership and, thereby, allow more people to afford to buy.