Some cities have some advantages over others, but I feel they are all great, and although the prices are high, there are gems to be found all the time.

There are plenty of off-market deals in all of these markets that you could take advantage of.

I'm reading The Book on Rental Property Investing in preparation for my first househack in the next two years, and I want to understand all the options before me to finance my first deal affordably while also taking advantage of leverage and loan paydown.Thanks for your time!

Self-directed IRAIf you are self-employed with no full-time w-2 employees, you can set up a Solo 401k & rollover funds from a non-Roth IRA as a tax-free direct rollover and then invest in real estate.A Solo 401k has several advantages as compared to a Self-Directed IRA including the following which specifically apply to your situation:Unlike a Self-directed IRA, you can have the account for the Solo 401k at a bank or brokerage that does not charge maintenance fees and where you will have checkbook control.Unlike a Self-directed IRA, if you use leverage (which must be non-recourse financing in either case) to acquire real estate with your Solo 401k the income will not be subject to Unrelated Debt Finance Income taxGeneral Considerations Re Investing Retirement Funds in Real Estate:1.

What are you doing to ensure that you are financially capable of taking advantage of an opportunity that shows up out of the blue?

The present value of that increased depreciation may be greater than the advantage of perpetual tax deferral in a 1031.

With the tax advantages of investment property, I have yet to pay federal or state taxes on the income, just the $800 LLC fee to the state. 

When a recession hits again, be in a position to act fast and take full advantage. 

@Stephen Wilson - In Richmond or Hampton Roads you can invest the funds in an Opportunity Zone instead of doing a 1031, which is way more advantageous.  

Went into homes that were for sale and pitched renting to us so that they can take advantage of positive cash flow and paying down a few thousand more in principal.