An FHA allows us some flexibility which is nice because we can lay down a lower down payment and keep some of the money in reserve in case of emergency, but the appreciation of a home in Detroit with a conventional loan is much higher.One other option that we have explored is buying a rental for the purposes of Airbnb in a different state.

If I receive a small cash flow of $600+/month, that is nice, but mainly I want to do it for tax deductions against my personal income so that I ultimately pay less in taxes and earn more throughout the year.Assuming I have a single member LLC with the property under said LLC, when I go to do my taxes - TurboTax asks me "Let's See if You're a Real Estate Professional"So of course I have a few questions:1. 

Nice thing is, you aren't the first to invent this wheel and learning from others who have done exactly what you want to do is the best way!!!!

We have a nice emergency fund that I am comfortable with, but not enough savings on top of it for a 20% down payment on an investment property.

I would also have additional cost of furniture if I went that route.

Both my wife and and are going to school, but graduate very soon and plan on starting a nice little oasis for college students looking for a nicer place than most apartments available near campus.

I assume your not looking to tear down a trap house in the middle of the ghetto and put up a nice town home in its place.

@Randall Cornelison nice to meet a fellow Texan here. 

@Matt Hudson It would be nice if insurance premiums were easy to estimate, but it is also probably nicer that insurance policies are perfectly tailored to the needs and specifics of a certain structure.

It looks very nice and tenants love it.