Two of the biggest challenges I face are that I’m not very liquid at the moment, and the Seattle area is extremely expensive.

2) How did you structure your first deal, and what challenges did you face?

The biggest challenge is time to manage a property.

As others said out of state can be more challenging based on location but local or out of state both can be done. 

Purchase price: $2,800,000 Cash invested: $560,000 The property is a three-story multi-family residential building with six independent units, initially facing significant challenges due to poor conditions.Renovation Investment Summary:- **Structural Repairs:** $250,000- **Kitchen Modernization:** $100,000- **Bathroom Updates:** $50,000- **Exterior Improvements:** $100,000- **Holding Costs:** $50,000- **Property Taxes:** $30,000- **Insurance Costs:** $10,000- **Management Services:** $10,000

Three and four units properties tend to be slightly more investor facing, but there are still a lot of regular buyers that pick up three and four units as well.

Challenges?

What adds complexity to our plan, is that we live in Minnesota... ...How challenging is it to meet the material participation hours needed to achieve active status?..

.: Quote from @Jonathan Small: You've raised some valid concerns about California, and it's true that the state faces significant challenges.

Challenge each number.