Referral benefits? 

On one hand, having the mortgage interest deduction against the rental income seems like a positive (but then closing costs seem to negate that benefit.)

You can usually offer more to get the deal done compared to flip/rehab prices and the benefits/cash flow comes on the terms.

Each have their benefits and some have some very high costs in regards to up front capital unless you put a Heloc down, do Hard Money Loans, or borrow from family.

The new lease between us was also a benefit to her because then she had instructions on where to send her payment portion. 

So your "Gross income net of mortgage" is $550/month which is 26.4% gross income over your $25k investment. so you can clearly see there's a benefit in leverage, NOT to mention you also get tax advantage because you get to reduce your income by interest expense so in the first year you are probably reducing your taxable income by $5000 or so...

There is a nice tax benefit to occupying a house for 2 years out of 5 for civilians and and extended period for military on orders (as both me and my husband were).  

Maybe they can put a parking lot, playground or a detention pond on this area thereby freeing up more of the build able area for development. 4) Is there any sort of flood control benefit?

Plus my father who is 51 would have the added benefit of having these two properties paid off by the time he's in his mid 60's, probably about the time he will be retiring.My Father is basically my "Private Investor" so to speak because he has cash and I have more time and energy to put into the ins and outs of finding deals and dealing with tenants.

I am newly self employed after leaving my w-2 job and benefits to flip houses and dive into multi family.