I just noticed your auto seems a bit, well junky.

I don't care much about soap and shampoo, but quality TP is something they will definitely notice.

You can give notice to one of the tenants, then move in and rent out rooms to further cut your living expenses.Yes, something I've considered but does require me to move from CA to TN, so big life change. 

They also noticed the furnace and hot water tank is missing / stolen. 

But for someone thinking about scaling and possibly repeating the strategy in multiple markets.. say, Austin or San Antonio-going the investment property route might provide more long-term flexibility.Have you noticed lenders trending toward stricter definitions of “second homes” versus investment properties?

@Jason Tucker  you need to add in your utilities, common area cleaning, and turnover costs to determine if it makes sense. 

@Sanjay Singh but I’ve noticed that many houses there are within my budget ....Can't comment on the Indianapolis market but generally speaking buying real estate in a particular market because the housing is within your budget is not a valid reason to invest.

I recommend educating yourself as best you can to avoid some common mistakes.

Anyways I sent him a notice through a lawyer about this issue stating that he is breaking the lease.

This allowed them to keep part of their funds liquid for their personal project while still deferring some taxes.Also, I noticed some great advice in earlier replies, particularly about HELOCs and the pitfalls of LLCs for 1031 purposes like @Maureen McCann explained it perfectly.