What are you guys paying in closing costs to buy these things?  

I've had to replace the water heater and some repairs to ductwork costing about $2300 so far.Would I work with them again? 

Buying in the low cost areas have great paper returns but are rarely actualized by out of state guys!

I have found that locally, this is where you can see other homeowners who needed the same thing done and often times they have someone who isn't big on the internet or on a list, but is reliable and cost-efficient and they appreciate the business.

I may want to do a cost segregation study and look into tax benefits.

However, your spouse could potentially qualify if they manage your properties or undertakes substantial renovation projects, allowing for more aggressive tax strategies such as accelerating depreciation.Another way to get passive losses is through Cost Segregation.

The downpayment stands at $108,000, and I have a mortgage at 4.9%, costing $1450/month.

No commercial business owner wants to own the building when they can triple net lease and instead just pay for furnishings, taxes , insurance and maintenance.The ConC return on a triple net leased property is far higher than on a property owned by the management company.Passive investors can still take advantage of accelerated depreciation and cost segregation thru material participation of new construction of a STVR home. 

Take a look at the list and keep in mind that increases are based on what they used to be priced at (growth) not at relative cost to each other.

Quote from @Jen Whitehead:  My husband and I have two properties that we used second home loans and in both cases my lender knows that we also rent out to help cover the costs.