@Harshit Tewari You are wise to be concerned about the tenants damaging the property, but what specific background check documents do you think will save you from this issue?

The overarching strategy to "think like an investor" is to put as little of your own money into each investment deal in order to maximize your cash on cash returns.

Given your situation, I think the best thing to do is 1) work on improving your credit and 2) look to house hack, preferably a duplex or fourplex where you live one unit and rent out the others.

Which is really the goal, I think.  

What’s a good estimate you think I should have for the down payment, closing costs, repairs, holding costs, and reserves?

Most people skimp on thinking about this and that's what ends up hurting them when it comes to renting them out.

She already sounds a little "off-center" and I suspect she's not as perfect as you think she is.

If your thoughts are telling you to  wait until you're in a position that you think is strong enough financially to be comfortable with this new business, Listen to your own thoughts.

I was thinking of the following criteria:1.

I think if you did this I would just give pool and hot tub access to the people in the main house to alleviate any confusion.