Owning a home also gives you stability (ie your landlord can't decide to sell your home), flexibility to do what you want to with the home and the money you are paying is paying down your mortgage, not your landlord's.One other question is do you plan on moving anytime soon? 

@Arthur Savery, This can be a great game plan called a diversification exchange. 

Remember this is a marathon......That said are you planning to flip, hold(short or long term?)

Hello all, I am new to the community as well as being the lead in real estate investments.My sister and I currently hold 3 properties next to each other in Riverside County, California (we'd like to get them in an LLC...

The markets open up if you are not planning on doing the management yourself.There are many markets that are growing in population and jobs throughout the country if you are willing to look at OOS investing. 

Even if the rental has a decent cash flow with additional flood insurance, we're still not sure we want to take on that risk as we are out-of-state investors (planning to move back to KY in the future, but not now) and we don't like that it will potentially bring down the perceived value when we try to sell it in the future.The seller has never lived there and has not provided any information on if it has flooded before or not. 

do you know how to read building plans or permits?

I have drafted plans for covered patios and decks in Coronado, City and County of SD.

Sorry to hear your self managing isn't going as planned...finding good tenants is tricky!

It has a free plan that I think will meet my needs.