That being said I have more faith in my community than to think we would be reduced to a Mad Max/wild west quality of life.

My landscape company is going to be taking care of the properties which should reduce costs.

Even if it doesn't get you into the marginal bracket, it still reduces your total tax.Like I said there may be some limitation on deductability of losses on Passive income.

It will have a much larger affect on markets that have been inundated with foreign money, and are now seeing reduced returns.

If you have the funds available, $400/mo is an awesome risk-free/hassle-free return on $28k like @Orlando Spencer points out.Also, when my reserves are reduced, I tend to work harder to build them up again!  

But you can reduce the risk by being rigorous about learning first.

Typically escrow account balances on the existing loan are applied to the loan balance and reduce the payoff. 

Then seller can decide to repair, reduce purchase price, or terminate agreement.

Then my partner adds in that since we aren't using an agent, perhaps the selling agent would be willing to reduce her commission by 1% to help sweeten the deal for the sellers since she won't be splitting the commission with another agent.

I thought about a winter "artists retreat" at a reduced rate and maybe deer hunters, never pursued it past that.