I’d say a save MINIMUM would be if you could earn that 5% return with 8 months of rent it’s better than the bank.

Quote from @Kyle Luman: I just listened to the recent BP podcast with Dr Benjamin Aaker and Dave Meyer from a couple of weeks ago.https://www.biggerpockets.com/blog/real-estate-1045There was a section where Dr Aaker talks about focusing on equity and trying to avoid cash flow since he didn't want more income presently while earning money as a physician. 

The investors accepted it.  3 months later the buyer tried to reduce the purchase price to $2.6M to stiff arm the investors. 

At closing, the accumulated credit is applied to reduce the purchase price, eliminating the liability.

You’d earn 0% on your $275k. 

Try to reduce the number of problems you can think of to a manageable level, or instead of a 5 bedroom place maybe go a little smaller with a 4 or 3 bedroom that is generally more manageable and not pack people in like sardines.  

Vehicle expenses are one of the major costs to consider, so living nearby helps reduce those expenses and saves you time.

@Andy LanyiGood comments on how to reduce tax bill. 

.✅ Investors - Keep detailed records of ALL rental property expenses to reduce your taxable income - helping your CPA spot additional tax saving opportunities.Imperative to use a CPA who is well versed in Real Estate tax code.My CPA is just that - DM me to get his contact information....

You can rent out a vaction home so it can be used to earn some cash and offset the mortgage for the frst year.