While they generated some cash flow, I found the effort required to manage them wasn’t worth the return.

Not to say you can't get a property manager in the future but I think it's best to learn the ropes first. 

From day one I treated my involvement in real estate as a real business.This means, I had an advertising budget, a lead generating and follow up process, a back end process and money source and above all an experienced mentor.  

That being said, it is another part of your property that you can use to generate income and in this area you can hit the 1% rule before expenses.

Future land appreciation in this area might outweigh any tax benefits from buying in other areas, with a better (tax-wise) ratio.Before pursuing your plan, talk to a real estate accountant to figure out if you can, in fact, benefit from cost segregation.

If you don't plan on allowing 4+ cats in your rental in the future you shouldn't start now.

Sometimes, there is also a tenant already in place which means you can start generating rental income from day one.

I will be sure to increase my rice in the future!

If purchasing new real estate as part of your reinvestment, a cost segregation study can maximize depreciation deductions, offsetting future taxable income.For effective planning, assess how the sale price is allocated between real estate, tangible assets, and goodwill, as this determines the tax treatment.

A lawsuit on public record against them could put some serious harm in their future endeavors especially if they have a track record of bad deals.Note: I am not commenting on the experience of either party noted above and responding in a fashion that this information could be used for fill in the blank company.