My question is if inspection turns up foundation damage will cost much more than what I expect and budgeted for... 

Repeat and trust the compound effect.

She owes me 2 months of rent, stolen appliances and damage caused to the property.

You can buy a house and it can get damaged by a hurricane (i.e.

I’m considering cashing out my 401(k) and IRA funds to invest in more real estate and would appreciate any advice or insights on whether this idea is viable.Current Financial Situation:Significant savings in 401(k) and IRA accounts.Additional funds in a taxable brokerage account.Age: 40, with a relatively high effective tax rate.Limited emergency fund.Existing Duplex:Mortgage with a 75% LTV ratio and a high interest rate.Modest annual cash flow.Withdrawal Scenarios:Scenario 1: Withdraw everything today at age 40, resulting in a 35% loss to penalties and taxes.Scenario 2: Withdraw at age 60 with growth scenarios ranging from 1.3x to 2.3x the initial balance.Proposed Real Estate Investment:Purchase two additional duplexes with a 75% LTV and 6.635% interest rate on a 30-year term.Projected outcomes include appreciation, cash flow growth, loan amortization, and tax benefits.Comparison of Real Estate vs.

So while some rules only affect potential residents, they can have the effect that investors in land like us will have trouble finding buyers. 

Are there any particular management practices or tools that have proven effective for rent-by-the-room setups?

I have about 25000 saved up and I'm living at home for free how much of that should I spend on a property or save.How does someone truly manage a property "effectively" from a distance? 

I think I need to hear more about the law before and the law as it would go into effect and make sure I'm not misreading something. 

You just have to make sure once you vacate your primary and converting into a rental, how would your DTI (debt to income ratio) be effected.