When you get into that 1/1 bath 600 sq ft versus 2/1, 850 sq ft, thats a big difference to where 150/mo difference is not that much. 

Have you noticed a better quality with any of the companies versus the others?

And actually more east northeast as that is closer to Chicago with higher population density and better shopping and entertainment amenities versus none of the above south and southwest except for cornfields and small towns

Another criteria to take into account is supply versus demand at price point you are hoping to achieve.

Using these, compare what your returns would be using that down payment to buy this property versus paying down your debt.That said, I would make sure you are spot on with your numbers (comps) and very conservative with your estimates and margins with this being your first deal. 

https://www.redfin.com/IL/Monee/25613-S-Bristol-Ln-60449/home/12630480I know someone that is trying to sell a house in Monee IL, (South of Chicago, north of Kankakee)Comps are a little rough but per sqft they are well under the competition. (95 per sqft versus 150)House is 3600sqft on .72 acre.Odd thing is it is not selling, they have had one offer.

@Dolly Caswell I grew up in Kotzebue and lived in Anchorage a few years of my adult life so I know exactly what you mean about the discrepancy between prices in Oklahoma versus Alaska.  

I've worked a lot of rentals and notice that in these outer areas owners tend to have a realtor handle the transaction versus the 5 Boroughs where they can just list the rental on a site and possibly find a tenant.

Look at their actual sold data versus the sales pitch over the phone.

If you are concerned about tax advantages versus investing then that is a math problem.