I am eager to get started but do not want to rush into it without the proper foundation.

The "bad" is usually overblown...but you do need to do your proper due diligence into the condos financials and such though.

I recommend you tell your tenant the same thing, get proper insurance.

Even if you're sure you can subdivide the lot, building the new house with out the proper permit and inspection you run a high and expensive risk of having to go back and fix something if it doesn't pass inspection.

The proper tax treatment is to add your net rental income to your other ordinary income, then compute your taxes.  

the power of real estate is through proper use of leverage, and appreciation forced or otherwise.you buy it with another persons money (The banks) and pay it back with another persons money (the tenant's)  The CF thing is misleading. 

So on day 6 I would put up the notice and just wait for the tenant to react. 

I was looking into Memphis Invest, but noticed the prices are a bit high, I would like using them as a rental management company, but I feel like if I find a home through an agent with minor repairs and invest a bit for a minor rehab, I can get a much lower over all price on the proper and get a higher cash on cash return, I do not know if I am correct in my assumption, maybe I am missing something I have not yet thought of, Thank you for the advice.

Hey guys, i am really itching to buy my first rental property!!! I just am nervous! How do you guys come up with the rental rates for your properties? Do you increase them each year?

Life insurance is a great place to leverage real estate dollars but it isn't an instantaneously accessible asset in the first several years unless structured properly.