I lived in Palo Alto for 10 years and grew up in the area. 

I grew up in the area and know it very well and would invest there.There are parts of it that are in the 100 year flood zone, generally by the bayous/ditches, so need to be careful. 

What would your ROI look like in 10 years if rent grew at half that amount and you had a 30 yr fixed mortgage on it? 

I grew up in Nipomo, just south of you.

I currently live in South Florida but grew up in Pittsburgh and still have family/friends there (and am actually coming up to Pittsburgh this weekend for the next two weeks).

He simply held the properties, kept leasing them out, cash-flow grew, and he sold out those properties in '20' clearing 6-figure returns on sales of each. 

It sounds like you really grew as a person and took that leadership stuff to heart, you took the bull by the horns, and went out and took action.

Then as I read on to the examples that out of pocket number grew quickly.So basically, what I have determined here is that rehabbing is not for me at this moment in time (unless I find a private lender with better terms compared to hard money.)

I had no intention of investing in the city at that time.However, as I spent time in Atlanta, I grew to love the city's rich culture and vibrant energy.

As you grew and hired your first employees how did you structure their positions and how would you do it now?