Learn real estate laws in your state.

While it's a modest monetary cushion, it's been great practice for landlord-ing and VRBO-ing one day.Thanks again for taking the time to respond to my inquiry and share your two cents with a newbie.

I'm a licensed architectural engineer with 8 years of experience practicing mechanical, plumbing and fire protection design in Baltimore, DC and the surrounding areas.

Good that you bought it as an LLC, because it sounds like a law suit waiting to happen.If I'm reading this correctly, my recommendation would be to encourage the tenants to move, then start over with a new design, making sure to incorporate someone who knows a little about building codes. 

@Vickie Bruce - first check with your local laws.

Working on a couple others.About 3-4 years ago, one of my neighbors who knew we rented bought their own townhouse to rent.In the past year, my father-in-law bought two different rental properties.My MIL (they are divorced) and her husband are looking to buy a rental property now.My neighbor in the last week mentioned they are now buying a condo to rent.When this many people in your circle of acquaintances jump into being landlords, is this a good sign or bad?

While we do have cash saved up, we'd prefer to work on our credit for another year before looking at getting a mortgage or commercial loan to possibly do a fix and flip.If you were us, would you a) use our cash to purchase, fix and flip something older and cheaper outright which seems like a huge undertaking for our first deal, b) use our cash as the downpayment/skin-in for a hard money loan (balloon) while we work on conventional qualifications to refi at a lower rate in 12 months, c) My in-laws are in the process of purchasing a seller-financed home and are interested in "renting-to-own" their place to us.

So again, the law of averages always puts things back in order.

I do not know your state laws but I do not believe that is correct.

This is a RE licensing law issue, not a RMLO issue.