If you are not in Huntsville or Madison proper, you may want to wait out things for a minute, as some of the outlying areas are definitely tilting toward supply exceeding demand now.  

Conduct a proper valuation by comparing it to similar properties in the area, considering both current and potential future values.

The key is making sure you meet the material participation requirements and properly document everything.

@Nathan Gesner Spot in - I’ve asked the same question in several forums (give me an example of a successful lawsuit where proper insurance didn’t take care of it) and no one has been able to provide one.

It could be a book on deal analysis, proper investor mindset, an internet figure who gives out great knowledge, a legitimate course.

Checklist: Here’s a quick checklist to get you started:Get a home inspection (optional but recommended)Fix any outstanding repairs or issuesCreate or customize your lease agreement (covering pool/fireplace)Set up tenant screening processesTake detailed photos of the propertySecure proper insurance (consider rental-specific policies)Establish a move-in/move-out inspection processClarify utility responsibilities in the leaseConsider a property manager if you prefer hands-off managementDon’t worry, you're on the right track by doing your due diligence.

It's available on the BiggerPockets bookstore and helps explain how to fund the loan properly and legally.

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

Not going to dive too much further into DSTs, but I will say they are a great tool if used properly.

This "guest" will be a tenant in the eye of the law so then you should treat them as a tenant and properly screen them and have them added to the lease.