I stumbled on some information about short term rental tax benefits as it pertains to lowering W-2 Income. 

Learn as much as you can about real estate investing through online resources, books, real estate agents and so on.

There actually is this weird scenario, just past goldilocks, and closer to Alice in Wonderland, where the economy keeps chugging along…. slowly, household incomes crawl ahead, corporate earnings play duck duck goose, unemployment (usually) rises and inflation stagnates.

Or the other likely problem - negative cash flow (the income projections aren't addressed here, and it seems highly likely based on the financing.)  

Networking through local real estate investment groups or online forums can help you connect with experienced folks who can offer guidance, but also do your own research on the way.

Net Operating Income / Property Cost = Capitalization Rate

What if it sits vacant for a month, and you lose the entire $3,500 rent income plus the cost of utilities, lawn mowing, and other expenses?

Make connections with other investors by using mentors, online forums, and local gatherings.

I'm curious on how best to structure this approach: Who owns what, who gets what, rental income & depreciation (all tax treatment).

Also look where you live.Cincinnati/Columbus have very active all online chapters so helpful for anyone anywhere.