@Liz Rogerscapital gains tax is normally $0 at the federal level if you are in the bottom 2 tax brackets(in aggregate which would include all your income).Be mindful that there still may be a state income tax.

I can tell you the local government does not like slumlords, which there are plenty of and unfortunately this attracts bad tenants and gives the rest of us a bad name, but actually living in the area for the most part has been great!

[from the SSA website] "Social Security is a federal government program that provides a source of income for you or your legal dependents (spouse, children, or parents) if you qualify for benefits.

Quote from @Nathan Gesner: I've worked with many insurance companies over the years and their definitions match law and zoning.Are the terms “short term rental” and “long term rental” used in government regulations and insurance policies?

The location is in Olympia, WA where there are many government workers, a university nearby, and two hospitals also nearby.

I have two rental properties (SFH/Duplex) with a fairly hight debt to income ratio as result (~40%), but have a solid government job and plenty of investments in financial markets to be considered financially healthy.   

In other words, if the property appreciates by $250K and you sell, you owe no federal taxes. 

The amount you can borrow may vary from state to state but FHA is a federal program so a lot of the requirements are the same. 

Regrettably choosing to having the government as your tenant is not always the best decision.

I believe Federal law supersedes state.. https://www.sec.gov/fast-answers/answerscoldhtm.html