. ;-)Anyway, why don't you take a look at Schedule E (to from 1040) to derive at the answer to your questions: https://www.irs.gov/pub/irs-pdf/f1040se.pdfStarting with line 3 you will see all the relevant parts that are to be considered when figuring out your taxable income (emphasis on "taxable" as this is ultimately what counts with respect to this particular discussion here).The form is fairly straight forward IMO.

Turnkey isn't terrible, but there are only like 5% of the providers that are actually respectable and a fraction of what they sell you are good deals.

If you're honest about the big issues on the property you may draw fewer potential buyers, but they will respect you for being honest and up-front and will be much more likely to look at other deals you send them in the future. 

Congratulations and (respectfully) I'm more of the opinion that deferred tax is preferred in the hopes that you recognize those gains during a period of low ordinary income (i.e. retirement).  

Respectfully,Haley

On the other hand, the land sitting underneath the property often does appreciate, but not always ... in a really good market, this appreciation of the land will more than offset the depreciation of the physical property, but most newbies ignore these markets because the day 1 cash flow tends to be lower than in markets where the land does not appreciate as much (or at all).Also, I have to respectfully disagree with Dave Toelkes ... even if your plan is to buy and hold for cash flow and never sell, yes you absolutely should still care about how much you pay relative to market value and the long term trends of market pricing.

imo both Fayetteville and Greenville have high transient populations from military and the university respectively so greater risk.

@Jake Gaines hey man i would totally disagree that TKs are good for starters but i completely respect your point of view and might i add it is alot better then if you arent in the position to be able to  just as mentioned by @James Wise they are awesome if you dont want to do anything (basically learn anything and can sit back and be know FOR THE MOST PART) that your investment is doing alright....BUT if you do want to learn i would recommend to go find a fixer uper thats cheap and get some real hands on experience regarding costs of repairs (which includes carpet kitchen washroom) but if this isnt something you are trying to get into and simply just wanting to put your money somewhere safe and make a small return then TK are one of the best and im with you if thats what your trying to do Best of luck in the future man

Respectfully, Gabriel Ugarte

In respect to both renting and flipping, I feel like Seattle is such a hot/competitive market that I don't really know how anyone like myself could find the right house that meets all the requirements needed in order to be worth flipping, without someone else getting there first.......