Some clients who are more aggressive will invest in B-/C+/C class areas in Dayton 1-4 units and get A LOT of cash flow, but incur risks of evictions, expensive turnover renovations, and general C class neighborhood headaches.What are you looking to achieve?

Option A would allow me to keep it as a long term rental .

I'll be looking for long term rentals that don't need any major repairs initially. 

Outline a clear exit strategy to meet your long-term goal of retaining the property for cash flow.Work with a CPA to ensure tax efficiency, particularly around depreciation, capital gains, and partnership income.

I probably won't withdraw it, so the long-term tax savings and asset protections are appealing.Anything I am misunderstanding or not considering?

As we have all seen, Californians are leaving in droves over the past couple of years, and fleeing to Florida, Texas and yep...Arizona.As long as we continue to stay under LAs housing market for affordability, we are going to continue to net those homeowners wanting an upgrade to a bigger house or lot. 

We are committed to building long-term relationships with our clients. 

Maintenance and potential repairs will also require a long-term financial plan and setting aside a contingency fund for such expenses.The steady cash flow, appreciation over time, and tax benefits can make a meaningful difference to your wealth in the long term, especially with the principal paydown on the mortgage.However, if managing the property from a distance feels too burdensome, or if you’d prefer the certainty and flexibility that comes with having less debt (especially given the high mortgage rates), selling and using the $100,000 in equity to reduce your loan for your next home may be the smarter move.

Meanwhile, gross rents of $1,800+ for 3-bedroom single-families is an achievable figure, so it’s possible to generate cash flow if you lever modestly.There’s a bunch of other stuff that’s worth highlighting—the economy, demographics, neighborhoods, new construction, and more.

David, this deal could work, but I’d want to dig into a few things first. 80% occupancy with long-term tenants is solid, but what happens if a major tenant leaves?