More specific: He stole months of rent and utility payments from a tenant (and threatened to evict her!)

This explains why your taxable income was zeroed out on Form 1040, even if the standard deduction wasn’t utilized.

Remain responsible for rent, utilities, and other terms until a replacement tenant takes over.#2 can be a bad option in the middle of winter when renters are harder to find.

We found this home through a combination of online tools and personal exploration in the area.

We found this home through a combination of online tools and personal exploration in the area.

From time to time I will hear of people who utilize it well and gain business from it. 

This step would include understanding City zoning & platting, locating utilities, researching City codes for development requirements (big ones include detention), etc. 

I see a lot of posts for furnished monthly stays where owners are fretting over utilities and how to ensure a tenant doesn't abuse their being provided.

If that's the case and you aren't viewing more properties in person than you are making spreadsheets on, you are destined for analysis paralysis.Spreadsheets can only tell you estimations based on numbers given to you online or by a real estate agent whose job is to sell the property.

My question is - what is the best strategy for utilizing my home equity and buying my first rental?