I don't have the money currently for another property but figured since the market is doing well right now, I would invest some money in stocks while I save up for the next. 

In most cases, you'll save money, time, and aggravation trying to figure out the intricacies of the Internal Revenue Code on your own.  

This conversation helps you figure out whether it is worth your time to show them the house.

@Robert@Robert Sapienza  The legal aspect is something for your attorney to figure out.  

Even if you figure another 10-15% of people not factored into the numbers, most people still were employed. 

Just have to figure out what you can and cannot do then figure out if its worth your effort and time on a personal level.. the fact is .. real estate is location , location, location  and supply demand and available credit supply the values.    

Seems like he's doing it already, so if the market rent is $700, rent concession for PM duties would bring the rent to $600 already, roughly $100.00 more than what he's paying.I really value tenants that handle their own maintenance, and that's worth something as well. 

Do Not let the assessor in your property unless its before the renovation and looks rough this can get you a lowered assessment for that year only.

Thanks @Caleb Heimsoth, I figured from the start I had to honor their lease I was more concerned about not having a move in checklist, and the fact that I plan to raise the rent $150 and kick them out of the garage scares me that they could wreck the place because there’s is nice move in checklist.

If the septic system on either house ever went out, then it is questionable whether the future owner of the property with the faulty septic system would be able to get a new septic system installed.I have considered hiring a zoning attorney to see if he could figure out a way to get the parcel rezoned to create two separate PINs and have been told this would need to be approved by the planning/zoning commission.