@Ashish Gambhir like most have said it will take some creativity or a lot of work to get a cashflow rental in the Triangle. 

Would like to be more hands off as well.

Do you see a model like this catching on?

I like the cash flow and see the potential for increasing rents, but I’m hesitant about overpaying.

There will likely be dozens of follow-up calls so don't be discouraged if you can't close someone upon first contact.All the best!

LoL So really trying to learn what I can, gain some capital, and see what my options could be for the year.I'd like turnkey and long term renters in place, as that seems like a good way to get started as a rookie. 

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

You are taking over for someone who didn't care at all about the rules and you want the city to just be like, "yeah, this is fine"?

Much like other markets in the Midwest, investors go to our market because of the low barrier to entry.

If you like the home, area etc, you could refi and pull out the same amount of money.