It's a good investment, as it will prolong the lifespan of water heater, some appliances (dishwasher, washing machine) and fixtures like faucets and maybe toilets.A. is ridiculous, as hard water is clean water.

Example: the intention of Passive Activity Limitation (PAL) rules is to prevent high-income earners from reducing their taxes by merely investing money into real estate.

Anyway, Lex is one of the markets close enough to me that I could potentially invest in when I'm ready.

Start by reading the Ultimate Real Estate Investing Guide: https://www.biggerpockets.com/guides/ultimate-real-estate-investing-guide/introduction2.

Also lot of insurance companies to give new quote asking for proof of new roof replacement otherwise not giving quote which concerns me as my roofs are very old replaced by previous owner or original roofs. 

If you were to add a full bath room that would be a better investment.  

- Properly document your rental income on a schedule E and report it to the IRS.Connect with an Investment Friendly Lender- Not all lenders are equal.

We are stable long-term tenants and would prove to be a good investment choice.

Originally posted by @Chris Gawlik:Account Closed.

Under 1031, however, you must use your tax-deferred gains from the sale of the rental to purchase another investment property (or more if you'll be making a killing).