Additional costs such as closing costs (investment property and home equity loan, vacancy in the beginning, repairs)My main question is: Is a home equity loan a reasonable way to generate money for your first deal? 

Additionally, buy the book called Never Split the Difference: Negotiating As If Your Life Depended On It by Chris Voss.

Are they included in the monthly rental or considered a separate fee in addition?

In addition, you can form good relationships that can serve you later on in life as your peers also get successful.You can learn all the things by jumping straight into becoming an investor, but the cost of not knowing something and learning can be costly.

No additional charge for vacancies, set outs, and they do not take first/last month or anything.

Like many others, I've been looking for additional avenues in which to gain financial independence so that I might have more time to spend with my growing family. 

I currently have an additional duty of managing a building for the Military and my wife manages a branch for her company so this is a great fit for us as a team.

The one specific one sits 40% vacant and we will be adding additional tenants to increase income.

It wouldn't have even occurred to me to charge that back to my tenants.If your LL sues you in small claims for the additional $2800, the burden will be on her to prove ALL the damages. 

Additionally, I did actually use last years taxes instead of the new sales price (which negatively impacts the numbers).I think you're right regarding the property being a dud, at least on the surface.