I originally lived in the casita while I rented the front home out.

Similarly, you can offset credits from the activity against the tax on up to $25,000 of nonpassive income after taking into account any losses allowed under this exception.If you’re married, filing a separate return, and lived apart from your spouse for the entire tax year, your special allowance can’t be more than $12,500.

What I've found so far is the property has to be self-managed for the first year and you either need to live in it 14 days or 10% of total days it was available to rent, whichever is greater. 

Obviously you’d never sell until you’ve lived there 2 years, that’s a 5 figure mistake. 

I live in Oregon.To summarize:1.

When they sell an expensive property, they have money left over to bid up properties in Arizona and live in much larger and nicer houses in better neighborhoods.Anybody who already has properties in Arizona has done quite nicely.

Once you are comfortable with running real estate, you can consider having one of you leave work and manage the properties full time.

Here are a few potential types:* House hackers trying to figure out how to do accounting (I fall into this category, as I live in one unit of a 2-unit property)* Real estate agents who need accounting software, or transaction management software, or marketing software (I also fall into this category)* Landlords who self-manage and want something to help them with marketing, tenant management, accepting rents, etc., and also need bookkeeping/accounting software.

Maybe determine a cash-on-cash figure that aligns with your comfort level.

Call the service center and see how long it takes to speak with a live person.