Holding costs are things like mortgage payments, taxes, utilities, insurance, HOA fees, and anything else that pops up while you own a home.

It's a cash flowing investment property.The daugheter has paid all fees, has been paying the loan off with her rental income, and the father paid the deposit but then put that deposit as a 30 year loan at 4 and half percent % 

They were great, paid their rent, late fees when applicable.

(State depending, I live in NY where CC and Fees are up to 10%)

Of course, all investors want to maximize the cash flow in the property so, fees etc are an important factor.

I'm looking at an online course for 175$ plus 250 licensing fee.

I can't confirm how much taxes you will owe (not a CPA, you should confirm this with a CPA) but you will be able to deduct prorated portion of all expenses on the property (mortgage interest, property taxes, insurance, property management fees, repairs, etc.) and then whatever is left will be taxed. 

Expenses (Monthly)Water/Sewer: $1,854Electric (tenant pays their own): $314Gas: $1,368Trash: $244Insurance: $928Prop Taxes: $3172Routine maintenance: $315Lawn/Snow: $1050Repairs/Replacements: $3340Management Fees: $2165Professional/Misc.

I know you should get 1% for every 100K your house is worth but since I have a low rate and dont have to pay any other fees maybe its worth it to hang onto it? 

Due diligence costs alone and fees could run over 100k or more even before closing on the property to start developing it.