Are there any other considerations to ensure appropriate liability protection in this arrangement? 

Also, consider tax credits and incentives for energy-efficient upgrades or first-time homebuyer programs that could lower your costs and improve your return on investment.In summary, starting in California with an FHA loan and considering partnerships and LLC structures can set you up well.

I need to ensure that the rent-to price ratio will sufficiently cash flow as I intend to hold at least 5-years before acquiring any other real estate.  

However dependent upon taxable income you could get away with a pretty low tax bill due to favorable capital gains tax rates.Be sure to work with a qualified intermediary and a tax professional to ensure you comply with all 1031 exchange regulations and to be sure you keep basis correct as all a 1031 does is defer your gain.Happy to help run some numbers or do some basic analysis for you if you would like. 

I created my LLC using an online service and had a lawyer review it to ensure I was fully protected and set me up for long-term business success. 

Conducting tenant reference checks is crucial for ensuring you find high-quality tenants who respect your property and pay rent on time.

The playbook on how to use real estate to build wealth tax efficiently:1.

What it does do is put the burden on the user to be more energy efficient.  

Would love to hear how you streamline this vetting process and keep things efficient!

Confirm with your CPA to ensure proper application of these losses.This post does not create a CPA-Client relationship.