I don't have the perfect example of $150K properties rented for $2000 pm but I did two projects where acquisition cost is $89K and $95K (rehab cost of $15K and $5K respectively) and I am renting those for $1400 to 1450 pm.  

Consistent rent 10 days late from a good tenant who cares about the property is better than rolling the dice on a new tenant...If you approach them politely and respectfully, you may be able to avoid the choice between 1 and 2 altogether. 

However I could be incorrect I don't claim to know everything or much at all :)I respect your right to defend SOCAL.

If the loan proceeds are used for business, passive, or investment activities, you can deduct the interest according to the respective rules.

I'm a new venturer in this respect as well in the valley and am interested in residential flip, market and sell.

Entry requires either a warrant or an emergency, and neither is present with respect to these suspicion-less rental inspections,” said Maurice Thompson, Executive Director of the 1851 Center.”

Other people I know and respect in the trade love them too and others like me don't.

I have experience with all of this, BUT I am respecting the request of my investor.

$50K would be a be enough for a respectable entry into syndicated multi-family projects in all Texas markets, imo. 

Respectfully Submitted,Grant