Call it $5710.Subtract annual mortgage interest deduction and annual property tax write-off multiplied by the formula a CPA gave me that includes their top state and federal marginal tax bracket, divided by 12, from it, note that I'm not a CPA confirm with your CPA.

I recall a discussion on BP about the Federal Trade Commission a few years ago, another top poster disagreed that the FTC had jurisdiction over real estate transaction, well, they do, you can go to the FTC site and search for sanctions and you'll find some hefty fines levied against individuals who violated advertising and truth in conducting business.

I'm assuming as I am not a partner in the property, a K-1 would not be issued and I can just claim the interest as regular home state and federal income?

As you mentioned, Cheyenne & Laramie are a bit insulated, Laramie because of UW and Cheyenne because of the large federal and state government presence. 

The IRS and other Federal agencies have their rules though.

That's seems to make a big difference in the federal tax next year.I have also learned the appliances and replaced items at the property can be depreciated as well. 

Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC.

I have reviewed Federal 2015 Publication 523 (https://www.irs.gov/pub/irs-pdf/p523.pdf) to see if I have a qualifying circumstance but I feel like I need a tax attorney to confirm if my circumstances apply or not.

Don't you Americans have some federal 3% down payment loan available to you? 

You will have capital gain, depreciation recapture and Medicare Surcharge (Obamacare) taxes at the Federal level, which are dependent to a certain extent on your Adjusted Gross Income ("AGI"), and you may have taxes at the state level.