If their parents really believe them to be on-time paying and take care of the property, then they should have no problem serving as guarantors and nothing to worry about.

careful..

There are a lot of deadlines to hit with exchanges too, so best to have some back up properties selected for what you will be exchanging into.

I’d be careful about a partnership of all newbies.

The downpayment will be financed by a private lender.Mortgage Payments: -$350 to private lender ($60,000 at 7%)-$495 to seller (170,000 at 3.5% interest only)Monthly CostsProperty Taxes: $833Sewer: $100Insurance: $120Lawn Care/Snow Removal: $100CapEx: $100 (new roof, windows, everything is in good shape)Vacancy (5%): $150Repairs (5%): $150Total: $2,398.17Monthly Rent: $3,000Monthly Cashflow: $601.83I am still unsure of how to approach the tenant who is paying $1,800 instead of the written lease terms of $2,200.

Then there are closing costs.Its probably would be a good idea to have a small reserve to take care of unforeseen things.

I'm not sure why it would cause issues with the tenants, they're usually not reading the meters (or know how to read them/care to)...the meter-reader is.

Would also be curious how you selected those four markets.  

I want to be careful with this and not disqualify my IRA and subject the entire account to taxes.

The right partner can help you reach success, so be careful who you team up with.