The cash flow would be a little better if both units could work as STR but initially, on purchase, there was not the market to have both units STR and the STR was not significantly out producing the LTR. 

in most states as long as your felony is not financial you can get a real estate license I woujld do that.then work for a top producer and learn the trade.. do his or her busy work share commisisons.I have seen many apprentice for 3 to 5 years then strike out on their own and end up doing quite well for themselves.trying to be a real estate investor with limited financials is a pretty tough thing to do with or without criminal backgroudn

What was the one idea you stuck with that produced your fortune over time?

You should only leverage to the point where the investment can still create cashflowIn reality a property that can not produce positive cash flow with a hypothetical 100% financing can never produce positive cash flow without a abnormally high rent increase.

If you have enough reserves in the bank to do so, I would try to just see if the bank has a mortgage product that doesn't have to look at your other income outside of what the property you're interested in purchasing produces.

My question is what records should I feel comfortable in asking the seller to produce, so I can do diligence. 

It is all made up - a lie....Unless he produces the paperwork.

One day I was brainstorming, and I remembered that my parents have a rental in Farmington NM, that is just sitting vacant, that they use as a storage; trust me I know, its crazy to let an investment that could be producing cash flow, just sit and do nothing. 

What are you doing in California with the cheapest property value being almost $300k-$500k to produce enough income to put down 20%?

There are so many reasons why newbies should start their RE investing local.Finally I question if Midwest RE investing is likely to out produce the historical 10% return of the S&P 500.