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

As you alluded to, sometimes a passive note investment purchased for monthly payments “goes south”, and becomes an active participation investment, with plenty of additional capital required for legal fees, forced place insurance, and property taxes.  

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

However, this means you’ll need to comply with the annual filing, franchise tax, and reporting requirements in both states.

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

Focus on absentee owners and start with the ones who live the farthest away and only own one property in the area since they have the least use for the property.You can also drive for dollars, looking for anomalies of disrepair and then look them up in the tax records and use a site like Spokeo to do cheap skip tracing.

Focus on cities with favorable price-to-rent ratios, population growth, and employment trends, such as Des Moines, Oklahoma City, and Charlotte, while considering factors like landlord-friendliness and property taxes.

Connecting with local investors and real estate groups can give you first-hand market knowledge, and considering factors like flood zones, property taxes, and HOA restrictions will also be crucial to making the best decision.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

.- 1031 exchange opportunity: I could potentially do a 1031 exchange to acquire a duplex or triplex, deferring taxes.- Access to funds: I could consider a cash-out refinance or a HELOC to access funds for additional investments.- which property would you recommended me to keep?