Hi All,I am looking for advice we are looking into investing some money into our first rental and at the same time are looking for a bigger house for ourselves.With this in mind we are considering keeping our current house and making this our first rental possibly in the future if we wanted to downsize we could return as we really like the neighborhood.Our objective is long term investment to supplement out 401k’s although likely along the way we will need a balance between cash generating property and appreciation driven.So FinancialsOriginal Purchase price $300K in 2014 (Estimated current value $330-340k)Deposit 20%/$60kInterest Rate 3.75%There is $200k left on the mortgage I am using a excel rental calculator and I am using the original purchase details without updating for the reduced mortgage or higher appraised value as that seems to complicate.Assumptions:Estimated Rent $2300 p/m (Based on zillow and comparables)Vacancy Rate 10%Property Taxes $8800Insurance $1200Maintenance/Repairs $2000Utilities $600(This was to include mowing services)Advertising $250Annual Expense inflation assumed at 2%Property appreciation assumed 3% (This might be conservative Ann arbor has been 4-5% for last 5 or so years)The property calculator gives me -2% return on cash but 16% return on investment.Based on this what advice would you give me or watch outs?

As for my goals, I'd like to supplement and eventually replace my 'day job' income with passive income from real estate. 

The ultimate goal is to build a sizable rental portfolio to supplement my income and achieve FI by 35. 

You would have to purchase a supplemental liability policy in increase your limit to $300k, then you could qualify for an umbrella. 

I attempted a very similar approach to say "look, im aiming to have this rented out for a third or up to half the year via AirBNB... and want that factored in for liability sake more than anything, not interested in any supplemental loss of rental income" .... she simply replied "Oh, ok, did not know that... good to know, I can up the liability to $1M to cover you in that regard, and add the 'Home Rental' package to it that is $271 annually".

Third, does anyone know of supplemental resources that can help me navigate the audio (i.e.: a digital program, or agenda PDF or other kind of document)?

@Alec Norman One option to consider is to get a SFH and rent out the lower level to supplement your cash flow.

To supplement this question, what if you are partnering with someone who has more capital/resources/expertise/real estate skills than you, what would make them want to partner with me? 

For the most part they are equity investments in high appreciation areas with my salary supplementing monthly operational losses.I am looking to expand my portfolio through additional purchases that cash flow.

If the property does not sell soon after the rehab is complete, we will rent it out so that we have supplemental income to cover the cost of the loans from the hard money lender and the original seller.