We stick to high quality neighborhoods and homes and are doing really well with it.

I was interested in this type of deal because I was living in the area for another year and needed to build equity as well as dip my feet into the real estate market.

well you dont say how much you have in it.. but if you can sell now and lose 10k and get out of a HML that would be my suggestion.HML  if they go into default interest and you could look at losing quite a bit especially if your HML is one of those that are not forgiving and wont give an inch on what they are owed.

Bought under value and currently adding a couple more homes and have brought two new tenants in as well What was the outcome?

However, there is a specific deal Which I find hard to understand the ARV for.It is a Single Family Home, 2 Bedroom 1 Bathroom, 850 SQFT.These two comps have a price gap I find hard to understand, even when considering the difference in renovation level.If anyone knows this market well enough to understand the cause of this difference, and if it might be due to an issue with the location, or if there is anything I am missing.Comp 1 - 1011 Elm Street, Burlington, NC, 27217 (120K)Comp 2 - 1109 Walnut Street, Burlington, NC, 27217 (120K)Comp 3 - 1505 N Park Ave, Burlington, NC, 27217 (180K)Thank you!

It's probably not going to end well for that landlord.

Quote from @Carson Hyland: Even if you buy the right property, failing to manage it well will kill your cash flow. 

On the other hand, the croissant are cheaper, local and work pretty darn well.

.- The inspections are only 5 years, but tenants are not likely to take care of them home as well as you, and refurbishing hardwood, lath and plaster, and anything else is going to be much more expensive than the typical Landlord special (white paint, and grey LVP)It will all come down to making your numbers work.

You will probably want to pay attention to the income tax basis to any proposed transactions as well as be wary of any transfers that cause a property tax reassessment, depending on whether that amounts to a big increase in taxes or not.Feel free to reach out if you would like referrals in San Diego County in order to work remotely.