You need to make sure that your first rental the rent covers: mortgage, insurance, percentage of repairs, percentage of vacancy, percentage of property manager (optional), taxes etc.   

Also was wondering how this will affect the repairs I want to do to the house.

What if the tenant comes to them with a valid explanation, such as an unexpected car repair, etc?

There is a tax rule called de minimis, stating any improvement under a certain threshold can be taken off as a repair instead.

In the "estimated repairs" field in the rental property calculator, we've currently got 25K there.

Granted this often covers roof repairs, exterior insurance, lawn care, sewer and some other expenses.

Both have homes that probably are behind in updates and repairs so they won't be expecting top dollar for the house.Always be sure that whatever list you get that it has been run through the National Change of Address (NCOA).

That way you have all summer to do repairs and get them filled.

I wonder what would happen if the inspector demanded certain repairs that I did not think were necessary?

The “agreement” he sent me is below (identifying details redacted):______________________RESIDENTIAL LEASE and OPTION TO PURCHASE AGREEMENTBUYER/TENANT: XXX Holdings, LLC Date: 2-16-2018SELLER/LANDLORD: XXXPROPERTY ADDRESS: XXXXXXRESIDENTIAL LEASE1) Rent: $2,500 per month2) Lease Term: 36 months, beginning March 16, 2018 and ending March 16, 2021.3) Maintenance: Buyer/Tenant will be responsible for maintenance and repairs ofthe property, not to exceed $500 per incident.4) Sub-Lease: Buyer/Tenant has the right to sub-lease this property with writtenconsent by the Seller / Landlord, and this shall not be unreasonably withheld.OPTION to PURCHASE1) Purchase Price: $ 345,0002) Option Period: 36 months, beginning March 16, 2018 and ending March 16,2021.3) Option Consideration: $100 - All Option Consideration will be credited in fulltoward the purchase of the property.4) Rent Credit: Buyer/Tenant will be credited $ 0 per month toward the purchase.5) Closing Costs: Purchaser will pay all allowable closing costs.6) Expiration: This offer shall expire on March 16, 2021.7) Inspection: This offer is contingent upon physical inspection of property andsubsequent completion of a more formal and signed Residential Lease with Optionto Purchase Agreement.8) Non-Exclusive – This agreement is non-exclusive and can be canceled anytimeby either party.9) Assignable – This Agreement is assignable with written consent by the Seller /Landlord, and this shall not be unreasonably withheld.X_____________________________ X ________________________________Seller/Landlord Date Buyer/Tenant Date_________________I have a few questions: Is this legit?