There are many advantages to having rentals including depreciation, avoided capital gains from the sale, passive income, etc. 

We will close a duplex in NC very soon and few questions want to hear landlord folks to share some valuable experience.1) Insurance: one insurance company agreed and then changed their opinion by asking us does this duplex has a 6-8 inch concrete wall between units.

Correction: that should be valuable not available in "my understanding is that the more valuable... 

Thanks SO much everyone -- it's really valuable to get this input, right when we need it! 

Obviously it would only be valuable if we could get enough to buy outright - probably $150k - $200k and then refi out.

Your gain/basis from property 1 gets carried over into property 2. 

If you're looking to manage your own homes and perhaps start a property management company, it's a great idea to get a job at one in your area, as you'll gain a lot of useful knowledge and can ensure that you handle future situations legally, correctly, and efficiently.

@Robert Lindsley That's great advice and valuable insight!!

Great write up but you should have tried making it to the 2 year mark to exclude some gain!!  

He paid 930k all said and done and its hard to believe the property gained 600k which would come out to about 1.5ish mil in 9yrs granted it is in a pristine location.