By doing this, and assuming you have more money left over at the end of each month, this will help reduce your balance much faster and yet you will still have available capacity to use, for when you see that hot deal that you need to jump on. 

I saved almost $34k down payment by using the built in equity int the house and reduced my  out of pocket. 

@Kathy ZickenbergIt doesn't seem like your CPA is providing accurate advice.It doesn't matter much about the income tax rate of the state you plan to invest in.You live in CA which is a state with one of the higher tax rates.Furthermore, rental properties, will likely show a tax loss as a result of depreciation(not guaranteed, but likely).Good thing is that California is not a gross income state and they will allow you do reduce your taxable income from rental properties so long as you meet the AGI threshold(below $100,000 - $150,000 threshold).

Look for the pain and offer to reduce or remove it.Determine if your seller really is a seller, is ready to act now, has the ability to pass title.Assess if s/he is a starter, estate builder, or "ender".

If my wife and I form the LLC together, will that reduce some of the risk stated above re: the participation theory?

(this made me laugh a bit since I get anxiety just thinking about talking with them).Apparently if the property is not sold then they will be taking legal action against our business and the homeowner.

If you claim the disabled access credit, you must reduce the amount you deduct or capitalize by the amount of the credit.

Added r-value will help reduce the strain on the hvac systems.  

My main concern is winter, I will probably look for a short term lease over winter if I can find one just to reduce the risk.Chicago does charge hotel taxes to Airbnb, and another 4% fee on top of Airbnb's fees which are published.  

After years of time spent on research, I've gotten to the point where I'm considering quitting my day job and taking up trading as a career, and I'm looking into options for reducing my taxable income.