Hi Danielle, As a property manager, if you were my client, I would recommend that you incorporate a monthly flat rate utility fee into that tenants lease.

The price points do make it hard to cash flow even with the lower interest rate subject tos. 

And @Michael Plaks is correct that setting up in GA didn't avoid the CA LLC fee. 

Collect your fee when the transaction closes.5. 

It's the boring places that probably won't appreciate above the rate of inflation that will provide real month to month income. 

Rentals also build equity through tenant payments and appreciation, with profits taxed at lower long-term capital gains rates when sold.

If the floating rate debt starts costing too much and there is no capital to replace a rate cap, reserves run out.  

Since seller-paid fees usually cover their services, you get local expertise without additional expenses.Final ThoughtsLive where you like, but invest where you can achieve financial freedom.Out-of-state investing has proved to present excellent opportunities.

(Anything that isn’t your primwry first is only tax free on a pro-rated basis.)I don’t know how you could swing it but…If they gifted you the kand they would avoid their capital gains tax.

Too bad you can't buy something owner-occupied, put 5% down with the best interest rate, live in it for 12 months (and fix it up), rent it out and repeat the cycle.Here's some other info you might find useful:----------------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?