So we aimed for the wide tier when we purchased, and of course we rent to anyone who qualifies, whether they are active duty or not. 

Because my friend/boss and I share the same values, we have aligned forces as business partners and begun this project with the primary aim of attaining both of our financial freedom. 

Below is full explanation, but in one sentence: I am aiming to put a house that conveys with extra parcels of land under contract, sell off part of that land prior to close, and get a great deal on a house.

Would it be better to aim for absentee owner, or owner occupied with loan issues ?

If rents stay as they are the building does cash flow but not at the percentages I usually aim for. 

What is a good ratio to be aiming for on your first investment property, keeping tax benefits in mind?

Just enough to keep my tax burden as low as possible (aiming for 15% bracket where capital gains taxes are 0%) because the amount converted will count as earned income for the year. 

You should certainly aim to get an LLC (or multiple LLCs) and trusts, and insurance set up on properties at some point down the road but when you are buying your first property, the added costs of all that asset protection may wipe out any profits you are making off your investment.Your first step should be to find a real estate lawyer in your area and talk to them.

Sounds like the kind of investing you are interested in matches pretty well to what I'm aiming for myself.I would advise you to maybe think twice before selling the Lynnwood house.

Though the case in the article may be difficult to argue in court since the level measured was technically within EPA guidelines.