@Ed MoranI’ve been evaluating the impact of the ‘active RE’ status and have some thoughts.

Not to mention the liability . . . if something hazardous were to happen to these individuals/or the structure as a result of these occupants, your insurance coverage and possibly your lively hood could be impacted. 

In a sense, you could say that you're investing in the area and it's infrastructure and growth potential because that directly impacts the long term viability of your property. 

Check out Impact Theory and get control of your mind.None of us are naturally risk-adverse or perfection or control-oriented. 

I don't want my decisions to impact their way of life.

Just not sure how going from one fed job to another impacts TSP.

https://coloradohardmoney.com/felony-charges-filed-against-airbnb-hosts-in-denver-2-years-in-prison-impact-on-real-estate/

This entire question presupposes that the next recession will have an impact of the local REI markets.

I would suggest working with a tax professional who can walk you through the deduction and it's impacts. 

Yes, the interest rates will be higher all things considered they are very low still, and i have no idea what scale of acquisition you are doing so I can't judge the full impact.