Scott) to only include houses built within 7 years of the subject property.

Even though I am not the original owner, should I not be covered for any potential repair costs? 

My post wasn't so much about the obvious things to look for, those are covered everywhere, and I don't mind digging for those things as needed.

@Michael KistnerMake sure that your rental income covers your basis and you can support your living situation with the job.

@Susan O.Non-qualified use is the period of time as a rental (not qualifying as your primary residence).Qualified use is the period you lived in it (qualifying as your primary residence)Your scenario would probably shape up into something like this...Daughter rents for  - 3 years (non-qualified use)You live in it for  -      2 years (qualified us)Total time owned -    5 yearsAmount of exemption available for primary residence - 40% (2/5ths) of the gain up to the $250K limit for you.Plus you recapture all depreciation.And don't forget that a property you convert into your primary residence that was the subject of a 1031 exchange has an overall holding requirement of 5 years. 

It is worth north of 600k now, also our tenants cover our PITI.

The properties I am looking at will cash flow a teeny bit, enough to cover mortgage, interest, insurance, and 20-30% for repairs and vacancy.

This is specific to single family homes, so you could definitely lower these amounts, especially CapEx, for a condo where most of the major expenses will be covered by your HOA.  

I try to pick up several properties in one particular location or properties that are within driving distances of each other then If I can I will buy one property for no other purpose than to cover the expense of using a PM in the area. 

And his rent covered my mortgage with just a little left over each month.