In terms of keeping both parties legally protected financially and legally?

Definitely want the building enough to do what it takes, just sometimes doing what it takes is not what makes the most sense financially and logically.

The "right" answer for you can certainly differ depending on the whole picture of your financial, tax & business activities.

It's just not how the financial world looks at investments...CAP is a component of "commercial" residential multifamily...5+ units. 1-4 unit properties are often classified as single family (This is how Core Logic classifies 1-4 units)...The properties are valued by comparable sales method.

@Mike Jordan Real Estate has nothing to do with the physical structure or financial returns.

I know that when we are new to this business, we are hesitant to spend more money than we think is necessary, after all, we have spent a ton of money on the rental home and getting it ready to rent out, so to think of anything else like a financial software program, is just not on the list of things to do, at least for now.

If you want to just build wealth, love your job, and have a strong financial base and could hold them through a downturn--I would just keep the properties.

I suggest putting together a packet/portfolio of your financial history that shows your smart financial desicions to present to potential leaders.

Then build and understand the financial model around that, that will automatically define the neighborhood and the building type for you. 

I'm not a fan of giving my financial information to random companies....