As the years have progressed, I've seen a healthy combo of appreciation & cashflow has continued to increase as market rents have gone up.To start off, I'd attend some local meet ups and network a bit, and start analyzing some deals.

But consumers sued them all too many times and for too much money.

However, your lending choice will ultimately determine the best route, as rehab costs may consume a portion of your $50,000 investment budget.

Don't forget to annually mark time for vacation or family time.You might consider hiring a teenager part time if there's something that is time consuming (for me, putting out 20 open house signs then picking them up).Best to you!

Or like California a RE Broker like myself or Consumer finance license all which are regulated by the state .

  (2) Variable cost: platform fees from Airbnb and VRBO, lodging/hotel/transit or whatever pass-through tax your local AHJ requires, cleaning fee, cost of replacement for consumables, repair and maintenance, etc. 

They make their money off of real estate agents, but real estate agents are the worst people to make money off because they are highly unreliable and in and out of the business when the market changes.Their target should be the consumer with higher levels that they can subscribe too for data, since Zillow is linked to the MLS now which makes their data somewhere more reliable.

Honestly, I wish more consumers asked this because there are far too many agents who believe their job is simply to show homes, write contracts, and collect a commission.

This negative equity position consumes the initial cash flow to re over the negative equity position.  

If you ask a banana farmer if bananas are good for you, he will tell you they are absolutely necessary to a healthy diet . . . and he happens to have some he can sell you.You asked if you need an LLC.