If you don't know how to do this properly it can be detrimental. 

Buyer may elect to treat this Contract as canceled, in which case all Earnest Money received hereunder will be returned to Buyer and Buyer may recover such damages as may be proper.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Definitely screen properly and don’t cut corners!

If anyone who is knowledgeable, please chime in so I can relay such information to my friend so they can have proper step to follow.

Kitchen cabinet handles were placed upside down, cabinet doors were installed backwards, electrical line for thermostat was ran on the inside of the bedroom exposed, trash swept into newly installs vents from the furnace, cracked tub, wall switches were installed sideways in some rooms, wall outlets were installed upside down on some walls, list goes on.

Having the books properly set up for the first time ever will help me get all the deductions I’m entitled to.

You did things outside of the normal without proper knowledge.

im in Orange County CA and there is a huge market here for room by room rentals here. i've been doing this for quite some time (over a decade now), and it certainly has its pro's and cons. my advice if you go about this is make sure you do proper vetting before moving someone in... not only for financials/ credit-worthiness, but also for temperament and expectations in a co-living space. we ask a lot of questions like "how do you handle conflict?"

You can create furnace filter size, when XYZ got installed, lockbox number, etc.