While I can see how having some POH's isn't the end of the world, especially if you have a solid plan to transition to TOH's over time, for someone with no "experience" and not a ton of startup capital, my major concern is being able to get financing if I can't secure a seller carried note.

@Mica MooreBefore you decide to self-manage or hire a property manager, you need to understand what goes into managing rental properties.A novice investor may see a rental property as a simple equation of: rental income - (mortgage + expenses) = profit.While this formula is the basic mantra for an investor, you also need to include your landlord duties and energy into that equation.

College towns can be solid for rentals.

Sounds like you have a solid game plan in place.

According to the IRS (and not someone's opinion), carpet is depreciated over 5 years:https://www.irs.gov/pub/irs-pdf/p527.pdfLook on p9 in the box.Therefore, I would counter them at the 5 year depreciation calculation and GET IT IN WRITING as terms of the settlement so they don't come back on you.Pet smells have a way of coming back no matter how the carpet was cleaned, so I can understand the replacement.

Property Managers are just like tenants: you need to know what a good one looks like, screen until you find a good one, understand your contract, monitor them, enforce the contract, etc.

I'm seeking insights and guidance from professionals with expertise in residential development.I'm looking to understand the essential evaluation parameters for residential development opportunities and learn about efficient quick & dirty underwriting.If you have relevant experience or knowledge, please reach out.

I asked my husband if we would choose to repurchase that house at that interest rate as a rental and he immediately responded "No" without any hesitation, and I was right there with him, so I think that helped us both understand where we want to go with this.

I understand this eliminates the "self sufficiency" test that the FHA requires for 3-4 units - which is great news. 

Please note the information provided below is a layman's definition designed to provide a basic understanding for the general audience.