Square footage in relation to beds and bath for that neighborhood might be a potential tip-off to this.    

Bottom line - budget for a potential loss of X amount (whatever you're comfortable with) and just make a move.

Expenses: holding costs such as utilities, taxes, insurance, lawn, snowCity fees - permits, potential fines and assessmentsLending fees if anyI would get an attorney involved and write up a partnership agreement that you're both ok with.

Ew Orleans because the flood insurance was $2400/yr with potential for continued increases with the ever-changing flood maps.

@Ryan Jones - I would reconsider the repercussions there will be in real estate investing full time.

Self-certification alone (by checking a box) without any other knowledge of a person’s financial circumstances or sophistication is not sufficient to form a “substantive” relationship.This relationship must be established prior to showing the potential investor an opportunity.  

You will either wait 6 months if you got a loan in your personal name or you can potentially refinance right away. 

So I am new to the whole REI investing world and have come up on some properties that might have some potential.

My fear is that competition from the apartments will force my rent potential down.  

Consider this before you cover/encapsulate material that you may need to disclose to a potential buyer.