I totally can understand why people would not go through the hassle of getting the permits but I think for me the hesitation is that since this would be an investment/rental property I would want to make sure everything was  done right and was safe for people to live in. 

Most of the investments were trust deed investments where I was a small fish swimming in a larger school, but they returned 8 to 10 percent and, naive or not, felt relatively safe to me.I have made some foolish mistakes trying to build wealth over my career (*cough* oil and gas *cough*), but I am grateful for them all.

This is a question easily answered by a local lending attorney, as are topics like usury, paperwork, and the lending process in your state.Less easy is developing processes to find safe borrowers, understanding how to evaluate a property and the associated numbers, and creating lending criteria that keeps you safe while providing a competitive advantage.

The parents want to "feel" like their kid's landlord is going to provide their son/daughter with a safe place.

Hoping to learn about some things I may not be considering, and would love some input on where to safely park the money.

So perhaps reaching out to other investors for average numbers on expenses in a local area is a safe way to make estimates.It also sounds like the realtor/investor has alot of pros, I will definitely look into it, thanks so much to everyone for there contributions!

For my out-of-state purchases, my realtor finds properties that she knows are rentable, in safe markets, with good people.

At the expiration or termination of the Lease term, Tenant shall repair any damage to the Premises or its contents and shall leave the Premises and the contents in a clean and good ordered, undamaged condition with the kitchen and all appliances, bathroom fixtures and building equipment clean and in the same condition as on the first date of the Lease including without limitation all interior and exterior finishes of doors, walls, banisters, closets, cabinets, ceiling, railing, trim, stairs, appliances and equipment it being the intention of the parties that the Premises shall be returned to the Landlord in its original condition.Tenant shall also:Maintain the house and all appliances, such as refrigerator, stove, dryer, washer, alarm, heating and window air conditioning units, if any, and return in the same working order.Promptly notify Landlord of any repairs even if some are Tenant’s responsibility.Promptly remove all garbage and debris and place at the curb for collection in secure containers respecting all applicable recycling laws.Use all plumbing, heating, cooling, gas and electric and other facilities in a safe manner.Not flush wads of toilet paper, grease, oils, coffee grounds, fibrous materials, q-tips, sanitary napkins, tampons or condoms in the toilet or down any drains.

It is okay if this investment doesn’t bring 10% year after year, as long as it’s safe, generates some cash flows and eventually appreciates over time.

(the box has 240V inside and doing anything with it is probably not safe for the average homeowner...meaning be safe and call an electrician---if you hit a live part inside the box it will send you 6 feet underground pretty quickly...have someone qualified look at it and repair it--there may be other (handyman type errors) problems inside it that need fixing like the open holes need fixing.)https://www.homedepot.com/p/Halex-1-2-in-Knock-Out-Seals-4-Pack-26071/100191724Good Luck!