That $1,800 divided by your $20,000 down payment is the portion we call the Cash-On-Cash Return.

That coverage can reimburse you a portion of your lost rent and legal expenses.

You did the opposite, you included the entire mortgage payment as part of your income.Your actual income would be your cashflow plus the principle portion of your mortgage payment, usually about 22% or $120/mo in your case assuming a 30% mortgage  So your true income monthly is $510 and $6100 a year  If you’re putting less than $50k in to the deal and the rest of your numbers are pessimistic instead of optimistic, and you haven’t missed any expenses, you’re making 12%, not great but not end fo the world  you’re going to have about $6,000/yr in depreciation so at least the income will be tax free and it shouldn’t kill you if it goes wrong  

@Brad PenleyFlorida being a tax free state is a great start, of course I have to mention you could also look at Vegas.You forgot to mention a couple vital points(1) How much of that $1million is capital gains, how many years of depreciation recapture are you going to have, and what do you owe on it?

So it's good that you did that already because if you hadn't you would have lost the ability to withhold any portion of her security deposit. 

You can take out a HELOC and only use a portion of the equity for a downpayment on a new leveraged property, so you'd still have 1 full free and clear prop, one mostly paid off, and one leveraged.

I'm going to pay deposit and installments as portion of  job is completed6.

I'm going to pay deposit and installments as portion of job is completed6.

Again the rent would only cover a portion of PITI.

I don't have any idea if they (son/wife) will be actually paying any portion of the rent.