I've learned so much :) The note fund I invest manages both performing and non-performing, but investors are insulated as they offer an X % performance warranty annual return for three years (X=12% in this case), by end of the term, I can choose to continue re-investing.

I know wealthy investors who are able to generate 20-30% returns annually.

Of course, you want to go with a turnkey provider (if that's the route you go) that keeps annual maintenance costs as low as possible, but there will always be something big that needs a repair when it comes to a long-term investment like that.

This couple does not need more income, they need a budget.I posit that this couple makes $150,000 a year gross annual salary.  

Additionally, there is an annual $800 filing fee for each CA LLC (each year), not to mention the additional administrative requirements that must be adhered to to ensure full liability protection, and then finally the hassle of the LLC filings themselves.That seems to be a fairly significant burden to incur on a property by property basis since these are only single family rental properties that generate only about 35k in rents a year.

If the HOA bans short term rentals do the numbers still makes sense as an annual rental?

My first investment property was bought in 1992, near a market high, and it has returned far greater than 8% compound annual on my initial investment which was 100% pulled out in 2000. 

If it was a SFH, then no problem , but given your situation, there could be too much liability in that approach.I own a condo and our annual inspection and treatments are covered under the HOA fees.

Besides, know all the numbers of such property, these are (see the Capital Letters to familiarize with RE acronyms)our Debt-Coverage-Ratio, the Annual-Debt-Constant and the Loan-to-Value to come up with the Net-Operating-Income. these numbers will let you know how to make an offer and how to approach a lender and it is imperative you have them correctly.You know why you want to be in Real Estate Investing right?

I found a 2 flat for 129,000 great condition - currently occupied - gross rents are 2,300 - only issue is that taxes are $7,800 annually.