CA has it's upsides and both states have insurance issues.

Same answer whether you borrowed against your residence or against your rental A or against your life insurance or from your family or from any other source. 

I’m told taxes and insurance is lot and will rise each year and cash flow is hard to come by.

Purchase price: $2,800,000 Cash invested: $560,000 The property is a three-story multi-family residential building with six independent units, initially facing significant challenges due to poor conditions.Renovation Investment Summary:- **Structural Repairs:** $250,000- **Kitchen Modernization:** $100,000- **Bathroom Updates:** $50,000- **Exterior Improvements:** $100,000- **Holding Costs:** $50,000- **Property Taxes:** $30,000- **Insurance Costs:** $10,000- **Management Services:** $10,000

The mortgage was also raised due to insurance issues to about $1,950… so I am not making much cash flow, more like a cash trickle.

They are investors as well and have good contacts in most markets they sell properties in, insurance, property management, etc.

My mortgage increased earlier this year as my home owners insurance went up due to the company closing and my escrow didn’t have enough to make up the difference so I’m kind of pay check to pay check right now.

Here are a few things that I like about the neighborhoods in Indy compared to other states: high rent-to-home-value ratio, consistent and gradual city development, relatively low property tax and insurance cost, affordable renovation service cost.From my experience, it's possible to find deals that meet 1% rule if you invest in *turn-key* duplex or SFH here, but they are harder to find, and could potentially slow down you from scaling up.

I guess it's just too many factors to consider and it easy to get overwhelmed and cannot get accurate info and estimation when I conduct analysis (ex. property tax rate, insurance, maintenance fee, rent, repair, closing cost, etc.) 

For liability protection, consider umbrella insurance, and ensure your accountant understands rental properties qualify for deductions without LLC ownership.