When you go to sell the property in the future, any depreciation take over the years reduces the cost basis and will also have to be recaptured as ordinary income, when you are likely to be at a higher ordinary tax rate.

Use rental income to grow savings and continue to invest in real estate without getting personal property involved. 

Sit down and figure out what your goals are, that may help you decide.Do you want a steady cash flow to replace your income?

We will have enough money for a down payment, and plan to use an FHA loan for the first property, however I currently have almost no income as I am taking very full loads in school to finish as soon as possible.

My goal is to invest a property that can cover all my mortgage payment and hopefully some extra income.

Ultimately I want to own rental units for passive income.

Unlike qualifying for a typical mortgage where it's all about income and credit, in this arena it's all about experience.

All of our programs are low-doc and don't require income verification. 

I do know that I want to invest my money in Real Estate and potentially in years to come retire with the income being generated from my properties.

For $135,000 you can surely buy a quad in ABQ but it will be in an interesting area and either need work or will have higher maintenance costs due to the clientele.But lower income housing surely cash flows better and NM has good weather.For me personally the question goes to what is your long term goals, why NM?