Offer to refund his deposit immediately as long as there's no damage (you handle the cleaning).

The basic rule for the amount of cash to have at hand is 3 months of ALL expenses as if the rental was unoccupied and you had to pay all the utilities on top of the full Primary mortgage, Interest, Taxes, and Insurance (PITI).As well, it's pays to have a bit more because life happens.Good Luck!

Typically, to qualify for loans when contract or self employed, you need two years of tax returns for a typical loan.

There are tax filings and yearly fees associated with them. 

The no-income tax and growing city were all a plus! 

Re rent roll, obtain copies of the executed leases and validate collection via bank statements and tax returns. 

@Dennis Hill if the house meets standards of that size family, enough beds baths and room size for children, then follow your standard rules, like I make anyone 18+ years of age qualify on their own unless they are a dependent of main tenant (prove with current tax return).

The total of all depreciation taken is taxed.

Taxes are low in Philly.

I highly recommend it.If you have any other questions or need any bookkeeping or tax help, please feel free to reach out.