And each go up in value annually. 

And @Michael Plaks is correct that setting up in GA didn't avoid the CA LLC fee. 

It would be a way of leaving an inheritance that's all wrapped up in an income producing bow. 

But since he sold the house, the entire insurance payout ends up taxable now. 

My only concern to look out for is that things can go 'rural' pretty quickly if you start venturing outside of town, and most lenders are going to put the brakes on financing if the appraisal lists the property as 'rural' (has to do with what they perceive as the availability of future tenants).Watertown, NY - It probably is as good as you believe, but the lending licensing is pretty tricky up there, so its just  bit more difficult to find lenders that operate up there.

Then you can trade up to another property where you can force equity. 

Yes, you can go visit Class C & D tenants at their homes to convince them to sign up for auto-pay, but:1) Once you leave they will revert2) Their biggest problem is NSFs! 

As you look to scale, just make sure to hold/build reserves for when repairs come up and take your time screening tenants as you will find a vacant unit is much less stressful than dealing with a bad tenant.

If you consistently analyze properties, recognizing a good deal will be much easier when it shows up.

That can get you some money up front to continue to build your portfolio and it takes you out of being a landloard and puts you into the position of being the bank instead.