Finally, there will be federal taxes beyond beyond income tax, since you are considered running a business, you'll be liable for self-employment taxes related to the business income from your nightly rental business.The proposed legislation limits the total number of nights to 90 per year (for units that are not owner occupied, like a home).

I don't think I've been to REEN WEDNESDAY, AUGUST 176:00PMREAL ESTATE WHOLESALE / FLIP / SELF-DIRECTED IRA WORKSHOPSSelf-Directed IRA And Real Estate Basics31 Investors goingAnother Meetup by Ryland in FRIDAY, AUGUST 19 12:00PM PASSIVE CASHFLOW W/REAL ESTATE FOR THE WORKING PROFESSIONALWalk the talk while 'Walking at Heritage Park'Marina Park PavillionA meetup by @Lane K, a great out of state passive income investorREAPS is also a good place as long as that is the kind of community you seek.  

It's nice to have the steady stream of income and no hassle of turning it around, but now I need the cash (buying a personal residence).  

Also while many of the high income areas have far exceeded the peak of a decade ago, the lower income areas are less than 50% of their price from a decade ago.But over time, prices go up and down, and with a long trajectory will always go up because their is no fighting the economic force of inflation.

Always off the top ask for a 12 month Income Statement/P&L.

In your situation, the only thing that will likely matter is debt to income.  

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.