Be sure to use a good experienced attorney or at a minimum a lease document that goes into great detail in this area to avoid surprises for either you or the Tenant.2) Reserves for Capital Replacements -Sometimes you can include in the Tenant NNN Expenses a charge for Capital Replacement Reserves.

Make sure you do only non-owner occupied to avoid HOEPA.

@Charles Moore  your assuming that the rental properties in the mid west perform like west coast... some will and some definatly will not @Ryland Taniguchi has mentioned a few places in memphis to avoid  and I agree I have seen investors buy in fraser and lose their whole investment..

I also don't give them deposit cards to avoid the whole, "The ATM machine screwed up!"

I would avoid renting to anyone with this type of offense on their record for a variety of reasons. 

Congrats on finding a roommate and learning a little bit about the biz all at once.Hope it works out and you avoid the whole getting murdered thing that would really be a hurdle in your investment career.

Based on their performance in your visit, you can avoid them in the future, win them over to work for you or you can be annoyed.  

You must avoid the 2 most common mistakes, over estimating ARV, under estimating rehab costs.

@Kevin McDonaldI completely agree with Account Closed on doing the repairs prior to the tenant move in just to avoid any lawsuits.

In addition to this, my coworkers (in a professional office setting) call me Pongo to avoid confusing me in conversation with our coworker Erin.