What’s your biggest challenge so far in analyzing those deals?

." - which to me indicates the same doubts that I have about the legality of the IRS position.Until the IRS is challenged in court over this position and loses, I choose to comply with their position.

Challenges?

@Blake McWilliams This is a most challenging problem with both residential and commercial investors.

In real estate, blunt honesty often protects people from common pitfalls or predatory advice that oversimplifies the challenges of investing.

This is one of the most common challenges in the LA County community on BP.

Getting one property and cashflowing it will be a challenge. you can try seller financing but you are still going to be highly levered which just enhances the risk that you are taking on.The best way to grow is to focus on managing your rental, saving money through your W2 and crushing that - if you are a realtor you will make more crushing it as being a realtor than over leveraging real estate - then save for down payment and buy slowly. its not a rush.

Sorry to hear about your challenges...not fun. 

Two of the biggest challenges I face are that I’m not very liquid at the moment, and the Seattle area is extremely expensive.

You're facing a common investor challenge: learning from experience (and sometimes mistakes).