A lower "purchase price" presumably would help both of us from a tax standpoint, but hurts me on depreciation?

@Anthony Warlick at 1.25M at 8%, assuming 75% LTV your payment would be 6879 without taxes and insurance (since that wasn't listed here).

FHA loan with monthly payment including taxes about 7800. the other side would get up to 3200.

most top producing resi agents avoid investors like the plague. 

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

A lot of my investors are just buying A-class for the tax benefit and breaking even. 

How would that affect his tax situation if at all?

Let's just imagine a scenario where you only have one property, and you don't use any PMSs or apps like Turno, for example.Cleaning and maintenance: 4 hours per weekRestocking supplies: 1 hour per weekResponding to inquiries and bookings: 2 hours per weekHandling guest concerns during stays: 1 hour per weekCreating and updating listings: 1 hour per weekManaging pricing: 1 hour per weekFinances and taxes: 2 hours per monthInspections and minor improvements: 4 hours per monthTotal estimated time per week: 12 hours, more or lessTotal estimated time per month: 26 hours, more or lessIf you do use pieces of software to automate your work, it can be even less.

@Zachary JensenIs it only depriciation or also insurance/re tax/mortgage costs?

He narrowly escaped the property tax sale on his primary home a few weeks ago.