But eventually you'll get there.

My goal is to eventually get to a higher cash flow in the years to come and simultaneously build equity in the property.  

Typically properties will mold and excessive damages will go under contract a time or 2 and eventually will come back on the market after the buyer's appraiser determines it does not meet FHA standardsCurrently, I am not seeing bids accepted under 86-88% following the Asset Manager change in the last 45 days or so. 

There are costs to setting it up, and not every dollar in the beginning will be available, but more is as it grows, and eventually even more. 

Most businesses start factoring in CC transaction costs into their sales prices, so eventually this comes back as a pass-through cost to customers.

But then I wonder if I find a property out of state and form an LLC then I could eventually get away from Ca state tax (more of a cpa question). 

I would like to eventually go PRO but I was banned only a few days after starting to use the site. 

Sure, many investments will be residential buildings or multi-families where there will be no change of use after the purchase, but many investors will eventually get involved in bigger commercial acquisitions.

If you can roll all of that to Florida and eventually move there you can consider the state income tax savings icing on the cake. 

qualified as 1031 exchange properties.(3) If I do this (buy an investment, convert into primary x years from now, then sell x + n years from now), what taxes would it trigger at the eventual sale?