And, considering market shifts.. what’s your approach to minimizing risks over the next two years? 

With a low 4.75% rate but minimal cash flow ($50–$125/month), your equity could likely work harder elsewhere.

The lessons you learned the hard way in 2008 will be invaluable now, and it’s great that you’re aiming to stay small-scale and within your comfort zone of Sacramento, which gives you an advantage of knowledge in that market.Given your experience, I'd say start by focusing on three key areas to build confidence and minimize risks:Budget Control: Over-renovating was one of the big mistakes you mentioned.

This property was a foreclosure auction purchase, so minimal information was known.

By tackling them early on, you minimize the risk of missing critical dates.In my experience, closing a deal within a specific timeframe requires meticulous planning.

@Jack Cottrellyou said you "need properties that I can get at a good deal that cash flow and appreciate while minimizing the trouble commonly associated with real estate"well... yeah, everyone wants those properties. 

@Curtis Cutler Avoid cashing out your 401(k)/457 to minimize taxes and penalties, potentially up to 40%.

Learn the eviction procedure for your area, perhaps contact a lawyer in the field to help you with this one, and get the fraudster you're currently housing out on the sidewalk to sleep in a cardboard box where they belong.You're going to lose plenty of money here, but this will never happen to you again, and you can minimize your losses if you move as quickly as possible.

If you’re serious about bidding, investing in a professional title search is worth it to minimize risk.

This allows new investors to gain experience while minimizing risk and maximizing returns right from the start.