I recommend you start with duplexes as you should always have a paying tenant.

and are you looking to walk away with cash or simply refinance (meaning paying off) what you owe? 

You are paying for it with a higher rate.

Having to go see a piece and pay for transport makes used less attractive. 

In addition, you would need enough working capital to pay for insurance (which will be going up a LOT in Los Angeles) and to pay for property taxes.Don't buy this unless you have substantial resources and a cash cushion to keep yourself safe.

My attorney stated not only must the person who failed to pay taxes be given notice but also the squatter as well since our suit names persons who were in possession of the house. 

@Cole Starin sometimes it makes sense to sell the WORST property in your portfolio.Another option is why do a LOC on the duplex, when you could just do a $100k cashout refi to pay off all your debt AND keep the property?

Vetting tenants on my own to avoid paying broker fees is the way to go

Run by Dutch Mendenhall and Amy Vaughn, they solicit hard money loans (which they do not pay back) and joint venture real estate deals which they also do not pay back. 

Add that to about $25K tax for the depreciation recapture, that would be paying a total of $70K in tax if they do the 1031 exchange.