Never your liability.If you stay consistent for the next couple of requests, this tenant will either adapt or eventually move, both outcomes are fine for you.

We eventually found a couple who seemed like the best option available, but they were from out of state and broke the lease after five months and moved back home.

Quote from @William Thompson: One thing I’ve noticed working with a lot of investors is this:People spend a ton of time researching markets, strategies, and financing…but almost no time building the habits that actually keep their portfolio healthy long-term.Here’s the simple truth:Your systems will make or break your growth.Not the market.Not the deal.Not even the interest rate.I’ve seen investors with average deals but great systems outperform people buying in the best markets with none.Things like:Keeping clean booksTracking expenses in real timeReviewing your numbers monthlyHaving a game plan before tax seasonThese aren’t exciting, but they’re the difference between “I think I made money” and “I know exactly what’s working.”Real estate is more forgiving than most businesses… but eventually, disorganization catches up.The investors who last are the ones who treat it like a business early — even when they only own one door.What’s one system or habit that’s helped you stay organized as your portfolio grows? 

So a long term play may have some short term consequences, but it should become a true investment eventually given the historical appreciation of RE over the long term.To make money in the short term in RE, is another whole ball game. 

If I purchase the home my plan would be to convert the basement to it's own dedicated unit by installing a interior wall which would separate the main floor from the basement so the exterior entrance would be the only way to access the basement with it's own dedicated path on the outside of the property.

And I do hope to expand into Dallas, closer to home eventually… and maybe even further away from home into Austin if that becomes an option as I have a good amount of connections there as well.

Long-term value will depend on how you structure it.If the homes are on permanent foundations and the community operates like a standard BTR project, any eventual valuation is going to be tied to rents and NOI, not to construction method.An entire neighborhood built the same way becomes its own comp set.5.

That said, I would like to eventually focus on one strategy to master once I get a clearer picture of the pros and cons of each.I would greatly appreciate any advice for beginners the community can offer, and I'm looking forward to connecting with others!

My first rental started the same way with lots of research, lots of questions, and eventually just taking the leap.Florida could make sense if you want to stay close to the asset, but plenty of first timers also look toward the midwest because of the lower price points and steadier cash flow.

So, if this tenant is going to do stuff legit I would want them to do all this stuff through the city, permit it and then have a contractor that I select do the work, and have an agreement they pay for it and pay for it to be converted back when they move out.