Just because it's physically the same building doesn't matter.

As far as the purchase itself, from a buyer side perspective be prepared that even an approved short sale will still take a little while to get re-approved for a new buyer, so you'll have to exercise some patience.

If it comes time to sell a physical property, I want to have accumulated as little passive loss as possible to avoid trapping the loss in a 1031 exchange.To give a concrete example, if I buy a 200,000 house with a land value of 40,000, I depreciate 5,818 per year (assume cash flow is small due to buying the house with a mortgage).

I feel like being physically present for my first investment is very important.

If you do leave your home town you might not be able to exercise your RE license outside of the NY state. 

Sounds like a great learning experience, as well as practice exercising that risk muscle. 

I live just south of Atlanta, GA, have a lovely wife and I enjoy playing music (guitar, piano), exercise and trivia night at the local pub.Feel free to reach out to me. 

I'm a traveling physical therapist looking to transition out of working in the clinic and treating patients in the next 2-3 years by building passive income through real estate!

Not all REI is about owning physical real estate directly.

However, it is very rare for a bank to exercise this clause and call the loan due.