Within 12-18 months you should see a positive return helping you get back to the $1500 cash flow you're used to. 

I'll hit two things real quick and hopefully they help.

I could be wrong, but I think the purpose of this forum isn't for CPAs to fight and throw out IRS Pubs and Regs (although, these are helpful) to impress everyone. 

@Natasha Rooney How would having a map overview of a market, showing the average Property Class of each suburban city and urban Neighborhood help you with your decision?

It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

The good ones will help keep you out of the bad deals and can help you with your numbers to make sure it is a good deal. 

I hope this helps! 

- What are the best neighborhoods for buy & hold in this price range?

I’m going to send you DM to help jumpstart your brainstorming for more buy and hold investments.

It might help you out if you're a hammer swinger type guy who can produce workmen like quality results versus homeowner DIY results.Someone who has been in this business for awhile , and brings a lot more knowledge , and contacts to the deal we'll have a lot better chance at performing a turn around on the property then to someone who is new and inexperienced.