Neither of us have any loans to pay off and plan on making a decent combined income.

this is a frequently used door by the tenants and if its keyed then both sides need to have a key or if it has a combination then we need to share that with the neighbors.

That combined with inventory levels tells you what to expect next month and the one after that. 

To start with you're forgetting some expenses: CapEx (15% combined with Repairs)Management (10%), always include, even if you plan to self-manage at firstInsurance, probably ~$125/month.

If you are sitting “fat and happy” so to speak with your rentals and aren’t looking for more or rarely will, then probably your license is to worth.That’s the very short of it.

Perhaps combine that with the BRRRR method and refi out in 6-12 months to return your capital.

Caseworkers were rarely responsive in my state before.

I usually figure 15% combined for repairs and CapEx.

We'd also hire a real estate attorney to assist in setting up the LLC structure.More numbers...Combined income of roughly $300k, combined debt of roughly $100k (student loans). 

“Buy” the property from the homeowner at current market price, but let them continue to live there and offer continued support to get the house up to common standards, and keep it that way.Establish minimum standards referencing those used to obtain FHA lending.Probably worth a professional home inspection if it has been more than 6 years since the last.Build a step by step scope of work and schedule that brings the house up to common standards.Schedule “check-up” walk throughs after year 1, year 3, and every 3 years after that.Ideally the resident of the property will carry the note, or a combination of a smaller loan from a bank to cover a chunk of cash if needed.Establish the purchase price at the beginning of the relationship based on current market value.