Given today's market.But conservatively, at those prices ($1,100 studio, $2,100 house) they would bring in$38,400 a year. 53% of that would go to fixed expenses ($899 mortgage @ 2.15% interest, $5.8k property tax, $4k house insurance).

Prioritize quality locations.Keep healthy amount of reserves per property, hire a PM, and hire a tax friendly CPA(not planning just prep). 

Whether you need a CPA with just three rentals depends on the complexity of your situation and your comfort level with DIY tax prep.If things are pretty straightforward, you might be fine with tax software for now.

.💬 Ask in the right forum – If you’re looking for financial advice, head over to the Finance, Tax, and Legal forum.

According to our understanding:1) California does not recognize REP status, but we could claim it on our federal taxes, is this correct ?

Sell, get the tax savings while you can.

$60k profit pre-tax.

Taxes, costs, eviction complexity, etc are going to be a much bigger factor in your success than anything else.

On top of that you have lower taxes, insurance and a lack of HOA's.

My strategy incorporates asset protection measures like LLCs, specific trusts as well as professional property management to spread risk and ensure quality operations.As well as using tax codes to my benfiitSection 179, IRC Section 162, Cost Segregation and Bonus Depreciation and later 1031 them out for larger projects.