Still, we are small time landlords (3 properties), and can’t afford to continue to pay all the expenses of the properties with only a small fraction of the rent coming in indefinitely.  

I believe deferred sales trusts will still recognize depreciation recapture in the year of sale, but this strategy would allow you to truly divest from the property while getting installment sale treatment for capital gains (which in theory could be deferred "indefinitely"; on this model, interest and dividends could be paid out but principal retained until you're ready to recognize capital gains over time).

The neighberhood is Ok in mid to low income area. but there is a old junk car keep parking indefinitly infront of my property.

Banks are not in the business to sell quick; they are in the business to hold on to properties indefinitely if there's any chance of a higher selling price.  

You should be able to find something affordable that will provide you with some cash flow at first and something that will appreciate reliably and indefinitely.

My goal is to continue to scale indefinitely until I attain the level of net worth i am comfortable with.

As far as the strategy you chose, your concerns all seem to be around a person squatting in your home indefinitely without paying rent, rather than how much money you will actually make.

I totally agree that government spending is wasteful in a lot of area - but that is not an argument against the fundamental need to hold everyone accountable for the health care system that they will indefinitely use.

Building for resale allows a relatively quick turnaround (compared to holding indefinitely) for quick capital exchange, but lacks the recurring income factor most are looking for, and comes with a higher tax burden.

A house I looked at last week is currently under contract for only 40k over asking price, when I thought for sure it would be 50k over asking.Inventory is still painfully low for buyers and will continue to be the case....indefinitely at this point.