Meaning, the bank wants to see that a property cash flows for typically one to two years of tax returns before they count it as income. 

If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

In addition due to prop 13, the tax base is a fraction of if it sold today.   

This means no DTI, personal income verification, or tax returns are required.They’re also becoming a powerful tool for BRRRR investors during the refinance stage.

I would consider staying with your parents and investing in another market that stretches your dollar and covers the cost of a professional property manager.

.: I think you meant to type was… Thanks @Jeff S.for your free professional advice.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

These are professionals with additional training and a stricter code of ethics.

In order to defer all tax you must purchase at least as much as your net sale ($500K ish). 

Very simply, large corporations pay into the tax base of that local community and that revenue is used to improve the community and make it a more attractive place for people to live.