Wise investors are putting systems in place (including property managers and other service providers) so that these risks are mitigated without investor being involved.

(And, beware of promoters that are selling captive insurance as a tax-shelter; not saying that they none of them provide the purported tax benefits - just that you need a captive insurance tax expert help you make informed choices.)

These are more complex legal structures that can provide even more protection than a traditional LLC alone.

Calculating potential rental cash flow involves considering factors such as property taxes, maintenance costs, and potential rental income.Consultation with a local real estate expert can provide insights into market trends and help you navigate the specifics of converting your home to a rental property.Additionally, understanding the current market value of your property will contribute to a more accurate assessment of potential equity gains in the future.Hope this helps!

But they provide steady income even with vacancies.

The owner of this property that I am submitting an offer on in round rock is choosing not to provide a sellers disclosure.

i would recommend getting a realtor that specializes in investment properties that would be providing options and comps for you 

We would also provide the down payment and manage the property so that my sister could simply live in it for a year and pay rent until she decides to move.

It provides so many protections that aren't in place if you buy off market. 

Any custom home builders that might be willing to talk to a newbie and provide some insight or mentoring?