It is ordinary and necessary for real estate investors to notice wear and tear from year to year and claim "depreciation" on their properties.The rule that your accountant is referencing to is the "real estate professional status" which allows you net losses from your rental activities with your other income if your adjusted gross income is above $150,000.

Of course you have to qualify as an accredited investor for most, but if you do qualify it gives you the opportunity to get into bigger deals/more units that you otherwise would not be able to accomplish or afford on your own.You'll also be a limited partner in syndications, i.e. no active role in managing the property, so you'd have to be okay with that as well.Just food for thought!

Another factor that comes into play is that I represent the target market that I intend to serve (traveling business professionals).

Kind of a serving the community move and marketing play? 

@Stan R. if this is still an open issue reach out to @David Soble he's a michigan real estate attorney with decades of experience and he's active in all the investor groups around town

It is a great business with a real estate play attached.  

You seem unable to even begin to put yourself in the shoes of the landlord here, to understand what it's like to have someone play games with you like this.

If you think you will go FHA, Conventional, FHA 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.

I actively invest in states that I have lived in (Indiana and GA) and know the area very well.

That’s where real estate investing comes into play.