I am not sure how to structure it and what blind spots I need to be aware of. 

I’m in the same spot.

You then only use up 1 conventional spot and then you can build your 2 yr hx up as a 1099 and be ready to rock your 10 conventional slots ;)

@Jim Morris you really should do a walk through through inspection when they are there and point out deductions on the spot.

Looking at it just based on what they can get for rent vs. what their mortgage payment is could put them in a tight spot - thinking that the property is going to cash flow because they are not seeing the whole expense picture is what you want to avoid.A great way they could bolster their cash flow if they wanted to keep it could be running it as a Short Term Rental.

I like the west side of town and love Smokin' Oak...it is a great spot. 

I about spit my coffee out reading the OP - a foundation slipping away from rain is more than what we would consider a tight spot up here...more like a catastrophe.Unless you live in Howls Moving Castle...

I heard Indiana is a great spot.

Spot on.

You don't want to buy something only to find out it needs an extra 20k in reno work that wasn't spotted by a home inspection.