If you're not, then that's cool, and you can just follow standard rent-raising procedures.

One of the tax benefits of a rental is the noncash depreciation deduction that serves to shelter cash flow from tax.

Once it is, you have a PA that you might be able to assign to a developer--but would need all the standard pre-development/entitlement terms, or a really long contingency with little earnest risk. 

If the tenant stops paying rent, go through the standard procedure for not paying rent, and eventually evicting this ghost tenant.

I have read up thoroughly on the 20% pass through deduction and have a question about this hypothetical person. 

I just want to secure my future with more than a standard 9-5 pay check to paycheck kind of job and have multiple incomes instead of 1, like them..

That's a pretty sizable loss that would probably be worth paying the deductible

Consult a local expert and real estate professional about the eviction process.Do the late rent notice or eviction standard process by the book.

I found a local lender who offered a pretty interesting product (at least from the standard stuff I've seen)First Time Home OwnersOnly 5% DownNO PMI3.75% InterestIncome Limits Waived for the Area we are LookingProperty we are looking at is asking $399k but we believe $350 is much more fair.

Most of the Sellers I have come across will deduct a few bucks here and there if the water heater is old or the roof has some years on it, but they were solid deals.