I am thinking Austin TX might be a good place to start due to the state's tax incentives and the recent decline in prices.

This will be my first rental property so want some advice.Purchase price - $195KDown payment - $59,176 (25% plus other closing)Annual rental income - $29,424 ($2,452 a month for 4BR)CoC return 10.7%Cap rate - 9.7%; Price to rent ratio - 6.6Cash flow will be over $5k per year after paying taxes and mortgage.

Any good bad tips appreciated.

If any one can give me any tips or advice on my current plan, thanks!

Topic no. 409 covers general capital gain and loss information.The rest will be taxed, so a big chunk of that money will go to your uncle who happens to be a partner of yours. 

Some easily verified facts:- San Diego appreciation has been great - San Diego rent growth has been great- prop 13 protects against exorbitant property tax increases- San Diego has one of the lowest eviction rates in the country- San Diego has one of the lowest delinquent rent rates in the country- San Diego has a very low vacancy rate- historically for long holds, San Diego has produced near top in nation return.  

I'm eager to hear your experiences, tips, and even the challenges you face.

I'd like to one day find all the deeds on the property going back to 1857 just to get a more accurate picture. 43 years: 4,400% gain (annualized 102%/year)26 years: 144% gain (annualized 5.5%/year)6 years: 47% gain (annualized 7.8%/year)Besides Real Estate where else can you see these kind of gains, tax benefits, and leverage?

He was referred to me through my CPA, whom I also feel is worth the $425 I pay for her office to prepare the taxes and who has set me up on Quickbooks. 

Currently, I find myself in the 37% tax bracket due to W2 income and I'm eager to explore avenues to shelter taxes through real estate investments.