You mentioned the following: "Take a look at what markets you are planning on starting in and make sure it is a growing market where the appreciation is obvious (emphasis added)."

If you build a buyer's list and you send them deals where the repair costs aren't close, you will lose them.

The WORST result for you would be losing your EMD which is exactly what happens if you don’t go to court.

If the deal collapses and I would lose everything, I'm out.

I would love to make a move before the end of the year and so I keep trying to decide which of the following is best for me:1) Buy 1 more expensive CA property near here, and thus a better tenant (less likely to cause issues), but lose a little bit of money every month due to the current numbers, while hoping for future appreciation? 

@Aleksandra DrovalI'm not sure what statistics you're looking at but everything I've read and heard shows exactly te opposite, that hotels are losing to Airbnb precisely because of the experience.

So I would have 23k stuck in the deal and would be losing close to $700/m before I deduct any expenses.

However, if the market turns, it could add pressure and cause you to lose your primary residence.5. 

The program stipulates that you MUST stay in the home 5 years or you lose a pro rated portion of that 8k.

As a neighbor, personally I don't care if someone smoke a little weed every now and then, but if they are smoking non stop 25 times a day, you might lose a good tenant over that.