As the property appreciates or rents increase, you can effectively phase yourself out of the property and purchase another, all while keeping the same initial mortgage.Newer investors like this strategy because it allows for a lower down payment versus purchasing a "true" investment property (which usually requires higher down payments). 

Yes I didn't qualify for the partial...From what I'm reading the gains will increase your AGI  but it will not bump up your ordinary income into a higher tax bracket.

I have $30k of savings and increase it by $3k per month. 

All of the lease agreements expire within 60 days of our scheduled close date so with these minor upgrades and savings it looks like I can conservatively increase the NOI by 30-35%.  

Once your team is established and you have one or two purchases under your belt, then you may want to start looking at increasing your risk tolerance a bit and looking at gentrifying submarkets within whichever designated city.Also, stay in touch with your agent or wholesaler and stay top of mind.

-Fenced in yard per unit, roof 5 years old, new water heaters within a few yearsFHA 3.5% down (3% of that coming from sales commission)Rents: Local rents vary from $900-$1200Mortgage: $2050I understand this deal will not produce that much cash flow in the short run (Once I convert more equity in the unit I can drop PMI to increase cash flow) Remember, this is my fist deal with little to no money in which doesn't produce a strong cash flow standpoint.

@John BergstromMany taxpayers are finding themselves taking the standard deduction as that has increased substantially starting in 2018.You may be able to "shift" some of the mortgage interest/ property taxes as a business deduction if you rent a portion of the house as you suggest or use a portion of the house as a home office.

Another way to make the RC more affordable is by increasing the deductible.  

Yes, it forces me to save in the form of equity and is protected from the rent increases I was facing at my previous residence, but I turned a blind eye to house hacking because of my love of home design, architecture, and having a space to myself that I really enjoy. 

Denigrating people, people who are professionals and do this day in and day out,  who work in real estate who may or may not have investment properties because they have found other ways to increase their wealth in this industry, who take time out of their day to answer your inane question about whether you should commit fraud or not is rude.