So we installed a window unit in the bedroom so when the weather is not that hot, we shut off the central air, and use our bedroom for eating and sleeping.BTW, I'm told 220 volts is more efficient, which is why for larger units, they're mainly 220 volts.

If I'm reading your pro-forma correctly your debt payment plus expenses comes to $685 only leaving you $65 per month net. 

At asking price and at current rents its cash flowing even with debt service. 

They want to take over the full mortgage payments to help free the parents from debt and also keep the parents as tenants to come and go as they wish.

The main idea is to select one niche which seems like you did: invest in residential multi-family (2-4 units) and stick to it until you're fully comfortable in this field.

@Stephanie McKay - this will depend heavily on your situation.In general- an LLC will not have a tax impact... it is mainly an asset protection strategy. 

The downside for them is that they won't start getting any payments until you do, and there is more risk involved for them since equity holders get paid after debt holders in a liquidation.

I didn't quit my job straight away, mainly because i couldn't afford to, so I started RE and bit by bit closed deals until I'd saved up a years salary and then jumped in full-time. 

Our neighbor's main duplex rents for even more - $600-$800 per night. 

Brandon Turner, one of the main contributors to this website, always talks about how his first property was a duplex that he lived in, and I personally think that's a great way to introduce oneself to real estate.