@Jose Saladin Purchasing your sister’s home as a live-in rental offers instant equity (~$170K), tax benefits, and landlord experience, making it a solid first step into real estate investing.

Over the past few months the landlord has been trying to sell the property but nobody has actually bought it.

Have you ever heard of a Landlord being sued by a Tenant and losing property?

If you're looking for appreciation and are comfortable with being a landlord, keeping it as a rental could work, especially if it's cash-flowing $300/month.

It also gets you into real estate sooner and lets you start gaining experience as a landlord.

We provided an itemized list of work done and the price while returning the security deposit.Tenant is claiming that everything was wear and tear and is demanding receipts and proof of damage.As per my knowledge landlord is not needed to provide receipts in Arizona.

A landlord friendly state won't save you from a bad deal.Not trying to be discouraging, just realistic. 

Even though landlord insurance rebuilds your property, that's not the main problem.

I was in college so not actually a landlord.

And don't let cash flow be the end all be all, if you have people living with you, your expenses and mortgage is significantly reduced that you pay and you'll be saving money, learning to be a landlord for the future, and building equity all at a young age!