@Damien Davis - I bought most of my properties when I had a W2 job. 

Hopefully, you find it helpful and qualifies us to assist you with your goals:)---------------------------------------------------------------------------------------------------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?

I listed 2 properties for sale from my portfolio.

I'm looking to exchange a multi-use property I own in the Bay Area for a multifamily property (expected sales price $3 million) that I could potentially convert to MTR.

I plan to use it as a rental property, but I'm concerned about the location—Bullhead City, Arizona.

. $40k a year for not doing much is a great investment on $40k unless you are putting in a ton of work into the property.Who operates the property?

Once they have seen the property and are interested, the prequalification and background checks will do the rest of the work in weeding out undesirable tenants for you. 

I get it...I get emotional with properties and buy into the sunk cost fallacy too.

It seems like you just really wanted this property so you let your emotions drive your offer.

After collecting tenant pass-throughs for the year, do you pay the property taxes at the end of the year or the beginning of the next year?