If you do not understand how NOI and cap rate determine value, learn it even if in theory it only applies to commercial RE.If you flip, you realize the gain in the short term.  

Here are some things I would suggest.1.Get Pre-Approved: Secure pre-approval for a mortgage to understand your budget and show sellers you’re serious.2.

Here are some additional activities that count, toward real estate professional and material participation hours.Research market for real estate transaction opportunities; current office market rates; terms of financingMaking offer contracts for properties that you end up buyingNegotiation for acquisition of rental properties that you end up purchasing; including directing due diligence and managing financial projections/business plansObtaining financing for properties that you purchaseProperty inspectionsAdvertisingMeeting with Prospective Tenants/showing properties to prospective tenantsNegotiate, obtain, & review proposals and contracts with vendors (insurance, utilities, etc) for property servicesReview and Negotiate The Terms of Sale AgreementsStaging and Decorating3rd party contractor, vendor, or service provider supervision

Historically, residential US mortgage rates are near their long term averages.

In terms of a tenant that has paid before and had a lease, who refuses to now pay or no longer has a written lease - this is still a matter for housing court as they are a holdover tenant, not a squatter. 

My partner actually lives in the area that we want to invest in.The long term plan is to just use this as a buy and hold.We were planning on splitting all the repair costs.Great insight though, I think we will have to go back to the drawing board and see what type of property would truly benefit both of us.

Mike,I don't know the terms of the AirBnB policy. 

Purchase price: $130,000 Cash invested: $175,000 Sale price: $550,000 Full Cycle Pre-Foreclosure > ShortSale > Fix N Flip

In terms of making a unit legal, I was on a call last week with some alderman talking about the ADU program and some of the challenges.

Client Relationship Management: How can agents build and maintain strong, long-term relationships with investor clients?