There is no such absolute rule or mandate for REI - it is up to you on your comfort level with your cash flow versus total investment versus appreciation potential.If I followed that rule, I would have missed out on a LOT of great opportunities over the years.We bought a house in Jones Valley in 2017 with negative cash flow - why? 

It's very unique and I think would be attractive to guests looking for a comfortable get away in the mountains. 

When i was younger I used to help her with renovations on some of these properties.I asked her about 2 years ago why she never went multifamily and she said that she was afraid of stepping out of her comfort zone and wanted to stick with what she had known and done forever.

I'd recommend searching by zip and interviewing an agent or two to see who you're most comfortable with.

If you're comfortable living where you are, equity in your current property or your savings rate would be the two other ways to get your next one which is going to be much slower.

Covering this with my salary is relatively comfortable.  

Like most service industries, there is nothing more important than the human touch as that is what people relate to and feel comfortable with.

Get out of your comfort zone.

The lessons you learned the hard way in 2008 will be invaluable now, and it’s great that you’re aiming to stay small-scale and within your comfort zone of Sacramento, which gives you an advantage of knowledge in that market.Given your experience, I'd say start by focusing on three key areas to build confidence and minimize risks:Budget Control: Over-renovating was one of the big mistakes you mentioned.

I can run and model numbers and am a CPA so comfortable with the finance side of things.