Keep in mind, the region is immensely sought after, leading to notably low capitalization rates.Positive cash flow from a rental property becomes challenging; however, there remains potential for substantial returns through appreciation.

Any expenses you put in to renovation or repairs are not deductible, but must be capitalized after the property is in service. 

The tenant pools are great, as we are the State capital, we have two MAJOR hospitals, government jobs, large developments happening (out-of-state union workers), MSU, Lansing Community College, and so on. 

If it is getting capital to start: will Tom write checks to your deals?  

Here's how I do my due diligence:1) Portfolio matching: (takes 30 seconds per deal)a) Have an educated opinion on where I think we are in the real estate cycles (financial and physical market cycles)b) Then and only then do I pick the strategies, capital stack, and specialized asset subclasses that make sense for that opinion.

I haven't reviewed the Standard Lease Agreement yet, but all I need is the right to sublet, and possibly some negotiated capital responsibilities (owner pays for repairs over a certain amount or split responsibilities on certain expenses).

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

Full disclosure: I'm one of the owners of JWB Real Estate Capital.

By partnering with Billy Medlen, we provided the necessary capital to purchase the property and fund $47,000 in renovations.

That means either you won't cash flow or your Return on Equity (ROE) will be terrible.Since this is your primary residence you'll be exempted from paying capital gains taxes when you sell.If you sell to your parents, it will be considered a non-arms length transaction and will get closer scrutiny.