Quote from @Oles Bober: The law says you can't charge them for ordinary wear-and-tear. 8-year-old paint is not something you would charge them for.

@Carlos Ptriawan I wouldn’t ignore the tax implications - interest income comes with ordinary income tax obligations.

Especially if your ordinary income is low this year.

The act also mandated that capital gains would be taxed at the same rate as ordinary income.

With securities you are stuck paying full taxes on your gains (short term long term and in some cases ordinary income!!)

I've looked at a few cities that seem to meet the criteria for a good market in that price range, but I have no idea if that's how much the ordinary house costs or if I'd be buying the dumpiest house in town.I appreciate any and all insight either about markets or suggestions and how to take the few funds I have and put them to good use. 

That flood from what I understand is something out of the ordinary this year for Indy and from what I am hearing other investors have been hit a lot harder than me so I am not complaining.  

Literally the only exception is a bunch of patio homes I bought in a good area of Houston (Galleria area).

I thought banks are kind of babies about it and require many months of successful rent payments to lend...Interest you earn on loans is going to be taxed as ordinary income or ordinary business income, not capital gains.

We're also converting the patio below the old sleeping porch into living space.