Like @Jeff B. said, depreciation is a fixed deduction amount, except for probably the first and last years where you would probably use the mid-month convention.I set aside money for income taxes.  

Except one section... which would be determining what rent you would charge your tenants.

Real Estate is exceptionally expensive business to get into, but it can be very rewarding.

Our initial goal for the second unit was to convert this to a short term vacation rental, but now we are questioning this option.Is anyone familiar with this form, any possible exceptions, and/or legal implications?  

All units will be vacant when we purchase next month except one.

None of my deals are on MLS, except a few foreclosures I've purchased because I get daily report of all the new foreclosures added to MLS that fit my criteria.

Also see public records to obtain the starting mortgage, and the remaining balance, that will be the price the bank excepts. 

The current tenant has been in the property for more than 10 years, has never had a single late payment, and keeps the property in exceptional condition. 

Here are the stats:Summerville, SC, 1790 sq ft, built in 2001, asking between $200-$220k (seems about right as Zillow says the price would be about $202k)Has not been updated at all except for a new water heater.  

If it is set up that the client receives membership interest or shares in an entity that owns real estate then that would not qualify.The exception (sort of) to this are specifically syndicated products that are sold as securities and set up so that client does receive a tenant in common interest in the underlying real estate asset.