I'm specifically looking at a property on Lake Monroe.

Quote from @Dyllon Gibbs: Hi All,Does anyone have experience with rent guarantee insurance and any specific companies?

Wanted to get some thoughts from more seasoned small multifamily investors on a few items or any other suggestions:- Any specific pros/cons of any particular states in SE (TN, AL, GA, NC, SC) to consider?

I'd deduct this before accounting for your total cash flow. 

Did ask about specifics they are interested in and after 8 hrs of no response I reported it as spam.

The other is a smaller operation which does a lot of business in the specific neighborhood the house is in.

You could also do a cost seg on the $500K sale which depending on what the dirt is worth you can take a large deduction year one of renting it. 

The major pieces of information you are missing include NOI which includes deducting all of your operating expenses from your gross rents sans debt service, market dynamics (what are vacancy rates and asking rents like in the market the building is located in?)

The Big plus is the tax deductions they will be able to take as well!!! 

If your brother is looking to invest in real estate largely from a tax reduction standpoint they should pay a qualified real estate tax strategist to review their specific situation and what may or may not work for them.