Additionally, involve a real estate attorney to ensure the transaction aligns with legal requirements and protects both parties’ interests.

We look at lenders (so long as they lend in the asset class you are considering) as an additional line of due diligence (they deeply care about their money and they are likely more sophisticated than you are).

if there is appreciation, but you wouldn’t sell your current home tax free and buy a neighboring home to rent out, (There by raising your cost basis for additional depreciation and lower capital gains tax.) then it probably doesn’t make a good rental property. . 

Quote from @Zach Howard: Quote from @V.G Jason: Quote from @Zach Howard: @V.G JasonTo someone just starting out (only option of OOS) who can get access to 200k, but no additional financing at this time but an additional 50-100k max in reserve cash, where might you recommend they start - markets/property type/strategy?

All this in addition to 6 other lease violations... 

We're fortunate to have an above-average income and live well below our means.This summer, we’ll be moving to Detroit (PCSing in August), and we’ve saved about $120,000 to invest in addition to having funds set aside for the home we’ll purchase in Detroit.The reason I’m posting is that I’m struggling to decide how to best allocate the $120k.

I could buy a LOT of umbrella (additional liability) insurance for $13,000.

Does anyone know of a calculator where I can plug in the additional yearly pay down along with the appreciation rate of my area? 

In addition, when you have leverage you have the other benefits which @Ali Boone mention.

Because of the additional income I am producing through the consulting business, I am afforded the opportunity to invest money in real estate.