Alternatively, you can  split everything in half, so half of everything goes on both your taxes, but I think that could be more complicated to document (with property tax, mortgage interest 1098s, spreadsheets for expenses, that sort of thing).

.- Cash flow % (commercial higher)- Appreciation potential (commercial lower)- Expenses (usually more unit, more efficient)- Loan complications (how much more complex will commercial loan be?)

I'm getting ahead of myself and into complicated territory.Anywhoos...Start with total income.

The rental Arbitrage model is becoming very complicated in some areas  and it requires  furnishing places  which takes a lot of money.

So let’s find a deal first and then you can go to all complicated Transaction if needed.

In order to do this you need to file form 3115 with your next tax returns (which is a bit complicated), which allows you to change depreciation method.

Turnovers are expensive.So, if you look back after 10 years and you only had 2 turnovers vs 4 turnovers because you charged 5% under market rate rents you will be far better off financially, not to mention in terms of the qualitative aspects of owning a rental.I will spare you the really complicated explanation, but assume a turnover will cost you $7000 including vacancy costs.4 turnovers will cost you $28,000 over 10 years.2 turnovers will cost you $14,000 over 10 years—and your 5% rent reduction will cost you $12,000.$12,000 + $14,000 = $26,000 over 10 years.There are further auxiliary benefits as well.

This complicates it more. 

Ah heck, this is getting too complicated.

It complicates things.