I just wanted to share my knowledge on the subject and help clear up any confusion. 

How are you managing your properties in that area given that property management company seem to be extremely unreliable and seem to go under quite frequently 

One thing that DSCR is not really set up for is if the property is "Subject to" meaning not move in ready/live able.

You are using the projected rental income from the subject property.

I'm a rookie in whole selling , I only have the knowledge that social media has and I think I understand how it works but have no idea of where to start or how its pretty frustrating not being able to provide for my family the way I want to and I could really use some advice or maybe tutoring in this subject, I just turned 20 and I want to have a good life in this economy I could really use any advice thank you so much.

Also the home is a subject to, where we are paying the remaining 3% mortgage, so a full refi would not be a great answer either. 

If they’re really in a bind, you could even explore something creative, like seller financing or a subject-to deal (where you take over their mortgage payments).

A few thoughts on the subject from someone who made a living doing this until the laws changed on the West Coast.Most folks in foreclosure go into deep denial.

She was also an educator serving our community and now we are both Realtors in MA/CT.We are seeing on-market and off-market Multifamily and commercial opportunities popping up frequently. 

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.