House was just listed last night and has already gotten several inquiries.One in particular, renter is asking about possibly a long term lease of 4 to 5 years.Gut feeling tells me that this isn't a good proposition for myself, the landlord.

I feel like shorter readable items like blog posts and forum threads are best to start.

My thought is that if you, as the owner, are living in your property, leasing out part of your home is allowed.

You should ask for and get: Rent roll, leases, statement of income and expenses-last 3 years min-bank statements as mentioned above, list of security deposits for closing, and do a professional inspection.Would not hurt to verify taxes are UTD and no liens registered.

I have not done a lease option yet in my investing career.  

Keep ALL monetary items closely recorded, and absolutely separate - aka do not mix business and personal accounts whatsoever going forward once the LLC is set up. 

https://www.har.com/content/newsroom/Houston Real Estate Highlights in May: Single-family home sales rose 1.0 percent year-over-year, with 8,157 units sold, the second largest one-month sales volume of all time;Days on Market (DOM) for single-family homes increased slightly from 51 to 52 days;Total property sales edged up 0.6 percent with 9,721 units sold; Total dollar volume increased 2.0 percent to $2.8 billion;The single-family home median price rose 3.4 percent to $243,000, which represents an all-time high;The single-family home average price increased 1.3 percent to a record high of $305,511;Single-family homes months of inventory was flat at a 4.0-months supply, the highest level since last August and equal to the national inventory level;Townhome/condominium sales fell 6.4 percent, with the average price up 2.5 percent to $213,912 and the median price up 3.0 percent to $170,000;Leases of single-family homes declined 1.8 percent with the average rent up 3.7 percent to $1,845;Volume of townhome/condominium leases dropped 22.6 percent with the average rent up 1.0 percent to $1,580.

Utilities (STR don't pay for those), replacement of basic items such as towels, paying your cleaners, etc.Are you buying here in SoCal?

My husband and I are looking at an investment property that comes with a tenant locked into a lease until March 2019.

I could not input the expenses correctly and separately as I do not have the itemized expenses, only the gross expenses.