@Diane Chapman Michigan is in the better half of the country when if comes to landlord vs tenants.California, New Yor, Oregon, Washington, to name a few, are all MUCH worse!

I'm considering a value add if the construction costs work out to add a 2nd bath (either full or half) to one property than is a 3/1. 

We have done many other subdivisions involving up to 100 acres, but there were the easiest. 

Quote from @Leena Stacey: The easiest way to be 100% sure?

I am curious what shape the house was when it was half-gifted to you because reading between the lines it seems like you squatted in the gift and didn't do any maintenance and don't really know anything about owning or maintaining a house.I also don't know why you want to get a rental and be a landlord when a house you got as a gift is a disaster.

It's a 1/1 with two car garage on a half acre composed of two Tax lots.

Seems like it's just 6 of one, half dozen of the other.Thanks.

Half of my tenants live like this.

He has about half the cash needed and I would be loaning the other half through an LLC that I have with my brother.

Definitely steering clear of it now. one of the sad parts of all this.. is its NOT to good to be true.. these types of deals are out there in the turn key world every day with quality providers.. this guy simply was not ready and all he had was a very savvy way to market himself in the new world but his advice and theories were not correct.. he simply is not an experienced real estate investor.. he just regurgitates half truths and other things that are patently false  like saying the low end D class is easier to manage than A class..