I also recommend looking for a property manager that can run the property for you - at least for a year or two - until you have more knowledge/experience and can take it on yourself.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

Very knowledgeable and a great resource.

Don't let him scare you with his "knowledge" of the law.

Just slightly limiting myself as I prefer to live close to work as the occ requires, but would rather have some extra drive time to go along with some extra cash. 

I have a lot of skills and knowledge on the rehab end of things that I can bring the table for a potential partnership, how ever I do not have much capitol.

Anyone with knowledge of this area, do you have an idea of what is a reasonable expectation for a builder to pay for vacant lots in these areas?

If you are having problems getting it rented or your gut is telling you he is legit or you really want to rent to them for some other reason just get a big extra deposit.

Some months the bill will be more than $400 and some months less but it should average out.A couple tips: increase the bill by about 10% to cover tenants that abuse the utilities ($110 per tenant, $40 extra for you).

In saying that, depending on your level if knowledge, option 1 is probably a better one. because $3000 is not enough of a buffer to service the property if you need to repair things.