Assuming the ceiling damage does not include rafters/joists and is only a question of replacing drywall/tiles, that should only be a few hundred. 

You'll need a coherent approval policy, an application process, solid leasing documents, and a hundred other things you haven't even thought of.

May be handing off the property to a PM in the near future though as I am moving a couple hundred miles away and not sure that I wanna manage it on my own. 

@Sean McCluskeyI think you are missing my point , At the end of the year the difference in tax rates do not matter, or only by a couple hundred dollars.

If you go this route, I think you'll be a few hundred bucks a month in the RED.To make this work as a BRRRR, you probably need to get it for ~$30k and then only take out a mortgage of ~$180k.

Also, if the tenant paid hundreds of dollars to cover the lawn with rocks, I'm sure it looks way better than it would with dead grass or weeds 3 feet tall. 

At least run this by a lawyer, its worth the few hundred bucks and easy to get on the wrong side of the law (I have done court mediation including landlord/tenant).Jon

I have a few hundred thousand dollars saved up to start note investing. 

I have almost 26 years and hundreds of deals worth of experience investing with lease options. 

If you are borrowing $240k+ to make a couple of hundred in monthly free cash flow, I would probably pass on the deal.