Connecting with experienced investors or joining local real estate groups can provide valuable insights and help you avoid costly mistakes.

The truth is, they will keep playing games and milk you for every penny they can, then they will leave the house a mess and cost more with cleaning, repairs, and vacancy.

You should only be liable for tax on any appreciation since you inherited the rental (minus the cost of your improvements). 

Most likely your insurance deductible will be more than that and an attorney will definitely cost you more than that.

Covering the mortgage isn’t an issue, but I’m considering factors like: Multi-Family: House hacking would help offset costs right away, but I’d likely need to put money into renovations upfront.Single-Family: Easier move-in with no immediate renovations needed, plus potentially lower tenant turnover once I rent it out For those who have been in a similar situation, what did you choose and why?

From there I accepted and negotiated to have the seller cover the cost of replacing the roof.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

It always takes longer, costs more and has more challenges than I originally thought.

Pretty reasonable cost too. 

Without this workout, the down payment requirements, current levels of interest rates and cost of the transaction would not be incentivizing enough to for investment.