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? 

Our portfolio currently cash flows, but cash flow isn’t our top priority right now since we plan to use this portfolio to supplement our retirement in 12 years when I leave the Army.My biggest challenge is committing to an out-of-state market.

Conversely, a new built A class SFR, in A class market of significant growth via a well laid out planned city development, great schools, area people are glamouring to move to, a-class tenants, very very low risk.

Quote from @Ven Bud: After hearing to lot of bp episodes on negative cash flow, I have a question.I am currently living in my primary residence and planning to purchase an investment property, and obviously it is going to be a negative cashflow (bay area), but I am of the opinion that as long as the rent on the investment property is atleast going to be greater than my current primary residence mortgage it can still considered as positive cash flow investment.The investment property is going to be in a much better location (for office commute, bay area proximity) than my primary residence.

It may also make it easier for your estate planning attorney to line up ownership with your estate plan, assuming a CA-estate plan if a CA resident.

The plan is to transition into a new home in 2025 or 2026 while converting this property into a long-term rental.

Any advice would be appreciated.I would first talk to a real estate attorney or a foreclosure attorney to make sure that the way you plan to do things passes muster.

With patience and a solid plan, you’ll be on your way to building a successful portfolio.Good luck!

The plan is to purchase a new home & keep current as a long term rental.

@Heather Bailey they will ask you what style of renting you plan to do.