If you know the filter needs to be changed regularly, that should be a tenant maintenance responsibility just like changing a light bulb.

My partner is self-employed, so has a K-1, not a W-2, so a traditional mortgage will not work.

Had a rental house that was vacant; just the frig and a porch light on. 

@Ben Flaskrud I’m not saying it will work in every market, but spent 2 hours a couple months ago comparing these high prices accompanied with low interest rates, to lower priced homes with more traditional interest rates.

No it's financed with a traditional mortgage.

Would love to hear if anyone thinks these numbers / assumptions are wildly off or too conservative.Acquisition CostPurchase Price = $200,000Closing Costs (at 2%) = $4,000Due Diligence (at 1%) = $1,500Up-front Renovation Reserve = $5,000Total Acquisition Cost = $210,500Financing:20% down payment = $40,00080% loan (likely a major lender, traditional 30 year loan) = $160,00030 year term @ 3.2% (educated guess with very solid credit)Monthly Expenses:Mortgage Payment = $691.95Property Taxes = $120Insurance = $55Property Manager (soup-to-nuts) = $159Other Variable Monthly Expenses = $40Capital reserve monthly deduction = $37/month (5% of net income withheld for capex)Assumptions:3 months to renovate / update post acquisitionProperty rents for $1,400 / month (and assuming a 3% annual increase)20 day vacancy assumption = 5.48% vacancy rateTenant takes occupancy month 3Annual expense growth rate of 3%Expected / Target Returns:Monthly IRR (w/ financing) = 15.48%Monthly cash-on-cash return (average over 5 years) = 2.79%Monthly Net Operating Income (year 1) = $798Capitalization Rate = 4.79%Kyle

Sounds like you are already building so you are probably using a construction loan and will transition into a traditional mortgage.

I would let him know your coming in to change filters check on light bulbs and under sinks for any potenital leaks.

Can anyone shed some light on this process?

The other option that I know you are familiar with would be to just turn it into a medium term rental which isn’t as lucrative, but still outperforms traditional long term rentals.