Quote from @Gregory Wilson: A few things there, Brendan.First, an LLC with you as a member and your (wife, son, pal, etc.) partner as a 1% member will file a Form 1065 which is about one tenth as likely to be audited by the IRS as a Form 1040 with a Schedule E rental activity (which I presume you will attempt to show is an active business).Second, you want an LLC because when your local Alabama handyman drives his girlfriend's uninsured truck into a van load of U of A medical school interns on I-22 when he goes  to get some shingles for your roof, on your business, you don't lose everything you have or ever will have to an uninsured claim. 

Any tips or tools for evaluating the local market would be greatly appreciated.

I'm from Franklin, which is about 20 miles south of Nashville, and I'm very familiar with the Greater Nashville area growing up here.Feel free to reach out if you're interested in connecting and I'm happy to be a local resource.

The local market has a lot of opportunities, especially if you’re looking into multifamily or creative financing.

It definitely won’t hurt our local market.

It was just an offer (costs extra) through a local lender I used!

A key part of our team is our talented interior designer, who helps us add that extra flair to every property we touch.We’re eager to connect with local investors, agents, lenders, contractors, and anyone else who shares our passion for real estate.

This strategy aligns well with the buy-and-hold model.Leverage Local Expertise: Partner with professionals like real estate agents familiar with rental markets and property managers who understand tenant needs.

You’d need to check the local laws to see what counts.Tenant Violations: If they’re breaking lease terms—like not paying rent or subletting—you might have grounds to evict.

Renting the PropertyIf your parents rent out the home, they have multiple income-generating opportunities: Renting As-Is: A 4-bed/2.5-bath home in a desirable area could command a high rental rate, likely around $2,500–$3,500/month, depending on local market conditions.