Let me know if you need some good options here; we work with quality accountants all around the country.   

Please share reading material , getting started guides or books that might help.I am currently based out of the San Francisco Bay area and I am looking to invest within a 2-3 hour driving range.Regards

If they don't - then it's optional.  

Most tax software has an option to specify that rental income is non-passive, and that's how you do it.

I might do a deal where I purchased the property and provided the “buyer” worth an option to buy for the period of the loan with monthly rent” payments equal to the interest payments on the would be note.  

However, those two options are too pricey for me.

The art is to increase the rent without running off GOOD tenants (very important, if the tenants aren't ideal tenants then non-renewing becomes the default option).

Current lien holder is going to be pretty much your only option. 

Are there options for assuming the existing mortgage and financing the remaining balance with another mortgage?

I would have moved there but with Grand kids all on the west coast it was not an option.