I have personally been raked over the coals on some south side properties with squatters because I wasn't prepared for the time it would take to stabalize the building.

Deegan and @Arda Bircan There are technically 7 Tests for Material Participation (but 3 that are most common) -> the individual 500 hour mark, that the activity of the individual is substantially all, and that the individual participates more than 100 hours + no-one else spends more time than them.Litmus Test: Are your hours integral to the operationsThe hours that qualify must be substantially all hours and have a legitimate impact on the rental activities.Activities that generally count: showing the property for rent, taking tenant applications & screening tenants, preparing & negotiating leases, cleaning & preparing the units for rent, repairs, and improvements, managing the construction, purchasing supplies & materials, inspecting the property, responding to tenant complaints & inquiries, collecting & depositing rents, evicting tenants, writing & placing advertisements, and working on your websiteActivities that don't count: education & research, investor-type activities, and travel time..

And pray they don’t steal everything one the way out. 4) Be aware you probably can never kick them out if they keep paying (at least not without 3-6 months of cash relocation fees.) so be prepared for this to be a rental until they decide to move out, not you decide to stop doing it. 5) PLEASE sell.

Understand Closing Costs: Be prepared for closing costs, which can be 2-5% of the purchase price.7.

I just want to be as prepared and more before I am able to dive into this path. 

Be prepared to end her lease when it is over and find someone reasonable.

Have contingency plans in place, set aside reserves for unforeseen expenses, and be prepared for fluctuations in the market.Investment Strategy: Define a clear investment strategy tailored to your goals.

I have selected a local CPA firm and will be utilizing them for tax preparation.

I need to prepare for this project by getting informed. 

.- Should I engage an attorney to prepare for lawsuit?