Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Nevada is a great place to invest because it's landlord friendly, low property taxes, tech job growth, population growth, and no state income tax. 

Thanks to the Cost Segregation Study, the property investors were able to reclassify the property into the following categories to accelerate the depreciation:The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

Unfortunately once you head into the suburbs the higher taxes really eat into cash flow. 

You may be saving money short term, but it does not mean you’re increasing your long term expected yields.  

@Tyler Ferguson It will be a little easier for your taxes and finances if you create a separate account for all of the property's income and expenses including the personal and rental part.

A lower "purchase price" presumably would help both of us from a tax standpoint, but hurts me on depreciation?

@Anthony Warlick at 1.25M at 8%, assuming 75% LTV your payment would be 6879 without taxes and insurance (since that wasn't listed here).

They own the house, they're responsible, they choose the house, the tenant, responsible for taxes and insurance and loan payments. 

FHA loan with monthly payment including taxes about 7800. the other side would get up to 3200.