I don't know where 350/month rent gets any tenants where you won't be having rent loss issues.

Hopefully the IRR approaches 20%, but it could result in loss of investment.real estate: historically low risk for long hold.  

Same answer as before, as long as we classify it as a business, we shouldn't be concerned about losses - because it will off set the other income.

By my calculations, in order to recover all of your costs, break even ($60k), and start to profit within 3 years, you'll need to cash flow $20k/year (~$1700/month), or in 5 years, you will need to cash flow $12k a year ($1000/month). 

Not only that but you can automatically screen tenants with an application and credit and background checks, collect rent through the app that will automatically be deposited into your account, automate late fees, itll send emails to your tenants when their lease needs to be renewed or when there rent is due soon/late, it'll automatically generate profit and loss statements and tax documents and more!

Honestly if the market is going up you can make rookie mistakes and the market will generally cover you, however when the market is declining like it is right now rookie mistakes often get compounded, so take the next few months really keep learning, consider your goals and most importantly your risk tolerance and once you see signs the market is recovering jump in and as long as you’ve taken an appropriate risk for your situation and prices are going up you’ll be fine. 

As the market levels off or declines we could see steep losses for some bidders. 

Make sure you also work with a tax professional to ensure you'll be able to utilize those passive losses- And that the cost benefit makes sense. 

When we run our number to determine profit and loss over 5 years we always assume an increase in taxes along with other operating expenses, which then drives how much income (rent) we need out of the property to make our numbers.

Your CPA can allocate the cost between all the residences and then you can split the sale accordingly and get your exemption, and either report the gain/loss on the rentals or do a 1031 exchange.