It does scare me that you don’t have 25k laying around if you’re using so little leverage.

The greatest and probably only leverage I have as an out of state investor is the proof of funds to show I have the liquidity and the risk tolerance to average 2-3 deals per month.The Yelp thing is specific to California and only for companies.

Where do you expect to receive the money to buy out your "partners" in these companies as you drive returns into the ground? 

It's properly leveraging (not over leveraging) the asset that pays off.  

To be honest, I´m in the Maintenance & Construction for corporate businesses for some US companies in Mexico and we do some Real Estate down here also, but it´s way much different than the US, so I have much to learn from a lot of people around here and as @Julio Gonzalez, I think this is pretty much the right pad and place to start and to break my fears to start all over again from scratchAlso, I´ld like to hear more from @Justin Brickman why he voted for his city, pros and cons, it will help to read from a local...As I said before, thank you all guys for taking the time to write in this post and share some experienceDo you plan to owner occupy. $40k will not get you a non owner occupied San Diego property unless you find some unlikely alternate financing.

Interesting idea, but I suspect that would create more problems than it is worth.Most of the leverage you have with a NNN lease is that you are working with a company, presumably one that makes money. 

Leverage it during the negotiation. 

I do like the tax benefits and leverage.

LLC's are still the way to go but yes you can't tap into owner occupied mortgage tools such as HELOC's or high leverage.

Your EMD should still be with the title company if it was handled correctly.