@Dimple Khurana , The process of entity structuring is somewhat depended on your risk tolerance.

But what other techniques are you utilizing to ensure that you can weather a vacancy storm in your market, especially if you don't have a large portfolio to carry a few vacancies?

It is, admittedly, a more complex strategy with the attendant risk of having that mortgage payment to cover whether the property is rented or not. 

I do have family that lives in New Jersey but if theres ever an issue down the road I don't want to have my family involved or have any risk. 

Even if these numbers all look peachy, do you think the seller would be interested in re-negotiating and carrying the note for an additional term?

Account Closed In my opinion, going for condos is risk itself alone before starting to talking about buying condos just for appreciation.

really the only risk to being sued as a landlord is if your a slumlord..

It doesn't matter that you said "You do this at your own risk and I am not liable for any damage or injury"...you are still the property owner and will get sued. 

I believe the first rental is the risk after that your feet are already wet so to speak any help would be great thanks in advance

It's not worth the grief and the resulting errors.When you use tax software, you will simply pick up a type of asset from the drop-down list (for example "residential real property") - and the software will complete 4562 for you the right way, as well as carry it to all other connected forms.