Your ability to speak to 'why it's a good investment' will rest largely on your ability to explain the numbers to both parties.

So far I have 1099, Advertising & Marketing, bank charges & Fees, Capital Expenses (for remodels) Car & Truck, Contractor, depreciation, donations, Employee benefits, insurance, interest paid, inventory assets, job supplies, legal &professional services, loans/points, meals & entertainment, office expenses, Rent & lease, repairs & maintenance, salaries & wages, taxes & licenses travel, utilities.

The Tenant has to sign it and accept the charges or they can refuse to sign and take you to court to contest the charges.Unfortunately, your friend did not create a list so you will have to refund the deposit and eat the loss.

I've done it in the past... but I had the ability to close in case things go south. 

@Aaron Hartsough It probably has to do with your comfort and ability to repay that debt. 

Ive said this house needs a second bath right from the start and have gotten nowhere(even the realtor said it needed one), the biggest problem I see in this scenario  is that I really wanted and needed someone who has done many of these with the mindset of the investor/REIA  to walk me through, not my dear hubby who although very talented in what he is capable of doing isn't very good at organization, timeliness, of follow through, therefore he has now quit on me and Im stuck trying to learn AND figure this out and not lose my shirt in the process.I had my realtor walk through the job with me and try and help refocus me but I really even need the financial piece played out at this point .

If you charge below market rent to a family member - the property may not be viewed as a rental property in the eyes of the IRS and you may potentially lose your deduction.

Currently renting my basement out to a single mother and her child since last March, original rent was $1575 (all utilities) and I saw her situation at the time and dropped it to $1500 for a 12 month lease with all utilities included, she purchased a electric charging vehicle less than two months after moving in so obviously taking full advantage of all utilities included.Two months ago, she had a boyfriend stay with her and told me that it was temporary while he is looking for a new place.

Currently renting my basement out to a single mother and her child since last March, original rent was $1575 (all utilities) and I saw her situation at the time and dropped it to $1500 for a 12 month lease with all utilities included, she purchased a electric charging vehicle less than two months after moving in so obviously taking full advantage of all utilities included.Two months ago, she had a boyfriend stay with her and told me that it was temporary while he is looking for a new place.

From a valuation standpoint, you can't really run any facility for under $5K per year management expense so once you add that cost into your equation you are looking at an NOI of $6K or so,  With that the value would be around $60K...and while I get that you will be self managing, I doubt you would agree to do so for the next owner for free of charge.