@Joe DeLucaI had a similar situation last year and can offer few thoughts...For the new system: From my experience, a new septic system is a capital investment and that will need to be depreciated.  

Hi there, I would like to understand the deal flow better - it seems pretty straightforward on the surface- but wanna know more details.My situation - I have a few long term rentals that are slight positive cash flow.

We’re in the same situation.

@Troy S.I would say it depends on your level of connections to businesses and expertise in dealing with different businesses (e.g. logistical/legal/practical issues leasing the space to a restaurant versus convenience store).

Is the neighbor aware of the situation?

We're also a single income family and are going to get into RE out of necessity - the most pressing situation being that I haven't driven a stick shift car in about 6 years since I sold my 944 Turbo before we got married.

I've been having some difficulty finding a bank that would offer an FHA option for a mixed use property (2 residential, 1 store/office).

In my particular situation, I could lose 58% of my income and I would still be able to service my total expenses.

My landlord has a history of towing broke down vehicles, so I was proactive and talked with the property manager about it to let him know the situation.

Short of that, you can be nice and give him 30 days notice of termination of work agreement and 30 days notice to apply for his apartment, the same as similarly situated tenants.