Hello Everyone!I am fairly new and still trying to get the ball rolling with REI. I want to be a full time investor as soon as possible, but am fully aware this is not a business that happens over night. Currently, I ...

And yes you hit pretty much all of the possible benefits."

I assume this would create a big difference on my tax liability since it would be cap gain vs ordinary income.

It seems to me that because of the increase in the standard deduction with the tax reform, that I don't really have a big enough mortgage to get any additional tax benefits. 

The BP forums, podcasts, books, and meetups have helped me gain a better understanding of how I want to use real estate to gain passive income and eventually financial freedom.

I lose the asset but gain the overage.

You can use your savings to put a down payment, then have your mortgage paid down by someone else while having your house gain appreciation all the while you are living there for free. 

Albeit, at the advantageous long term capital gains rate, so probably about $15k in Federal tax. 

In order to gain financial freedom I need passive income and lots of it.

This would eliminate that benefit, give it the added risk of warping, cracking & peeling, and add more maintenance.