I had my property in an LLC and then when I wanted to refi and take cash out,  the mortgage co. said if you haven't taken it out of the LLC at least 6 mo. prior to the re-fi, you won't be able to take cash out. 

That's different than just inflation.Appreciation is the inflation of value on something in relation to another similar good.Housing prices are going up compared to the price of lumber and concrete. 

For instance the cost of insurance there is super cheap compared to where I am.

The best way to determine the value of a house in a certain location is to compare it to the price of recently-sold similar houses in the immediate area. 

@Dee BullockIn a wholesale deal with the cash buyer intending on flipping it, your numbers would be the ARV, After Repair Value, which is determined by similar properties within a certain radius, 'comps'/comparable homes.

This way you can give all your attention to mastering that aspect of investIng prior to moving onto the next.

Properties are low and rents are high (compared to what the houses are worth)- ROIs of 15%+.

@Kevin O'Brien If a building has 5 or less units, the seller will need to get a zoning certificate prior to closing.

Please do much more research on the Sub-2 topic and get with a local REI attorney to sort out the details, prior to moving forward. 

Very few San Diego OOS investors started prior to the Great Recession.