It seems low, but I'm not familiar with the rates in that area. 5) What's the $500/month in Misc. expenses for?

Not only the equation, but programming that equation into the system so it adjusts the starting temperature according to the current gas and electric rates.)Before doing any of that, I'd make sure the low-hanging fruit has already been picked- LED lighting, water-efficient fixtures(sinks, toilets, shower heads,) possibly spray-foam insulation to reduce drafts, to name a few.MG

If you are low on funds, hustle, save, or refinance.

Low pay. 

It seems to me accepting bids for a rental would only benefit the landlord in a very competetive rental market with low supply/high demand where you might find high quality renters willing to oubid each other just to get into a place. 

I know that I would like a tenant pool who is credit worthy, trustworthy, and not low income.

It's a low crime area already but it's extra insurance we like anyway.

One other thing not in my original post, it is understood that an evenutal consequence is that our daughter's basis, when she buys the property, is the low sale amount, which could affect her in the future if/when she sells.It would be better, of course, to die first, and have her inherit the property with a "step-up" basis. 

I've been pre-approved for a 3.5% down FHA loan which is what I would prefer to do because the low money down but with it being an FHA loan the house is going to have to be in livable condition to meet requirements for the loan. 

In my situation (getting 30 year mortgage with 25%) the Cash on Cash return are pretty low.