If you want to figure out the value logically, you can create a spreadsheet that will show your cost of financing and principle paydown on an annual basis to figure out the break-even date between the seller-financing price vs paying market price, but with bank financing.You mentioned a 40-year term, but is there a balloon?

I do agree with alot of points everyone has mentioned.

Should have mentioned this is on my personal residence. 

Also, when the late fee is listed in the lease agreement, the text mentioning the amount has to be bolded."

He often mentions BP. 

House rules, meeting requirements, and chore's to mentions a few. 

Hi Hadar, as others have mentioned, if you have the finances, purchasing your first investment property with cash could be a better option.

Having parents co-sign for the loan (if possible) is such a powerful tool that I do not see used enough.You mentioned renting to college students?

This leaves the other options I mentioned -> STR that meet IRS requirements and #3 from the list of material participation above, but it will be tough to prove that no one other individual spends more time than you do since this is probably not true. ...

And when I mentioned Detroit on BP I'd be ridiculed.