I understand from reading the FAQ on the IRS's website that " A LLC that chooses to be treated either as a partnership or corporation for federal tax purposes can organize as a Qualified Opportunity Fund ", however, I'm wondering if I should go forward with that filing strategy?  

I am a full time federal employee, who works 40hrs a week, no more.

I think the same "common sense" approach (to the extent that a big federal system like the Dept of VA is/can ever be "common sense" or "logical") will apply here, what exactly that looks like remains to be seen.- Million dollar fourplex? 

That could entail federal pound sand prison time.

I hate to say it but a lot of people don't understand how big govt/business works but think about it for a second if there was no crime or war on drugs to fight how many local/state/federal law enforcemwnt agents would lose their jobs.

Not all CPAs do.I can tell you from my own situation that no only do I not pay additional taxes ... but I quit paying federal tax in March because of my expected real estate losses this year.I’m not a CPA and not authorized to give tax advice.

Will I pay any taxes on that $10,000 at all in this scenario: federal/state/local, and/or depreciation recapture taxes?

@Jordan DeschampsLook into the newly gifted to you by the Federal Liberals through brutal spending and increases in taxes first time home buyer program.

My question is what are the benefits of a local bank or credit union to a large bank like Bank or C.U. like of America or Navy Federal?

However, you still want to be extremely careful here especially involving a federally insured mortgage.