Congrats and good advice above Jorge, and as a brand new landlord, take a look at IRS form schedule e for some basics categories of deductions....I often tell people if you do your own taxes and have itemized and handled some more complicated worksheets, deductions, and credits, then you may be able to go diy on taxes for a couple of rentals with some good resources..but if you have not done taxes or just simple 1040 ez stuff, I would use a cpa with some real estate background in helping  small, residential landlords..best of luck

He is a young, enthusiastic, communicative brand new investor who I believe would do you proud in this undertaking. 

I don't think Kfalls is the land of milk and Honey but it's a lower entry point to play ball then other area's of Oregon.

I have always regarded it as a high risk value play due to issues with access to the rest of the city as well as less than stellar demographic.

) WOW.......I was amazed at how friendly people were (and nosy) and how willing to chat with me.I listed and sold a property that is now the Fallston Shopping center on Belair Road, lots in Bel Air, commercial properties on Mountain Road (Maryland) and a few small subdivisions to mention a few.While fellow agents sat in the office (playing politics, and waiting for the phone to ring while on floor duty, I was out there walking and talking and getting good exercise, and getting to know people and asking my simple questions and getting leads).

Buy in the lower-end areas for the great cash flow and then diverse your portfolio with some higher-end product as more of an equity play.

My sister and are just starting in rei. We found a good deal for a flip in our area. We are afraid of the risk...as I am sure most people are to start with. We are just wondering what is easier to start with? Flipping...

So much of the barrier for private street level investors was they just didn't have enough capital to play ball.  

You might want to look into development.If you can build something brand new and pay about as much as renovating something old and sell it for more you might get better returns that way.With 700k you have lot's of options to get going.  

Granite counters or brand new cabinets in a rental would be silly for the investor.