How are you going to source leads?

I like MFR for the sake of living mortgage free while we hack the property and generate money faster to purchase more properties.

The fact there is a very distinct water line about 1.5-2' up leads me to believe there is a significant drainage/water issue.

If you don't know the lease status yet, this would likely be step #1 for you.Depending on your goals for the home, having tenants in place may be a positive for you since tenants scare away some buyers, leading to less demand.

What is your main source of leads?

It is pretty amazing stuff. 80+% of our leads/rentals come from online lead generation so it is very efficient and we text message the vast majority of leads which saves tons of time. 

The house next door rents for $350 per night and it's just a standard house with no pedigree.With that said, corporate events and weddings would be the big revenue generators supplemented by guided tours when the house was not rented.What I would do is renovate the interior of the house to match the interior of the Brady Bunch TV Show.  

I used FB and GoogleAds to blow up my REI business until my SEO rankings started generating a lot of free leads.

I will definitely get going on getting the houses in tip top shape and get them ready for the market.I would like to keep my holdings in California in possible, but I am not seeing anything in Sacramento that makes it worthwhile of executing a 1031 exchange at the moment.I will definitely do my due diligence and interview property managers along with verifying their references.Since this will be my first multifamily investment, I probably will be conservative and used the cash flow generated to amass the capital needed for future investment. 

You are also putting multi-generational family savings into one investment.