The new lender is recommending refinancing the first property (which I planned on doing anyway) by basically paying off my original mortgage, combining the two properties under a new loan / mortgage.

Lenders often use the BPO in combination with an AVM in assessing property values for the purpose of different lending products.

But yes, you have to take into account marginal tax rates, and depending on how much paper loss you have you could even move into a lower tax bracket.Due to combination of real estate deprecation and tax credits, I have had several years where I had a NEGATIVE effective tax rate, meaning I got money from the Govt at tax filing time that I never paid in. 

The greatest part about CRE is the combined strength of your team. 

Most people's wealth is a combination of real estate and liquid investment equity in this economy.

I’ve listened to a few episodes on a good number of these podcasts including Target Market Insights, Apartment Building Investing, and the combination of Grant Cardone, Rich Dad, and Dave Ramsey.

Would it be better to have my car and student loans paid off (about 10k combined) or to have a savings of 10k to show as reserves on the student and car loan?

Was the water and electric meters combined or are they still separate?

I just divert my high savings rate into paying down the 0% (introductory rate) credit cards I used for the rehab.I really recommend if someone is looking to start with their first deal and its an option, try to combine 2 or more of the multiple strategies they talk about on the podcast and at BP: Househacking, BRRRR, live in flip, partnership, syndicate, wholesale, 1031 exchange.

Lender - This person can put the numbers together(acquisition, rehab budget and ARV) and figure out if property has enough equity to cash out some or most of your down payment and rehab funds, as well as calculate cash flow to determine if property can be turned into a rental.A combination of what I mentioned above should curb your fear.