I've heard renting 3 bedrooms is a very crowded market so thats why im looking to do the smaller 1-2 bedroom options Im concerned about all the competitions and the somewhat transient nature of the city.

otherwise i agree with the others - 50K just isn't enough...Hi Nicholas I’m starting to rethink my strategy and what would be the best option to get my foot in the door.

There may be several options for remediation depending on the state and applicable regulatory context.

You might consider cutting your losses and selling it, or investigate STR options.

@Caleb Kim  isn't 3 boilers a bit of a pricey option? 

You have all brought up some great concerns regarding depreciation recapture and tax free gains vs tax deferrals, I think I need to zoom out and look at the bigger picture when comparing all options.

Sounds like a good plan - from a financing perspective, its a good idea to start researching now - for better or for worse, a lot of lenders view 1st time investors without a primary residence with a owner-occupied mortgage as a flag and might limit some options

Sacramento is a great option if you want to stay in California, or choose another cashflow positive market.

Unfortunately, we found out that we could not use this option since the property used window units for A/C which was not accepted for FHA financing.

I will explore my PM options and ensure I explain the fact that the property may need “more attention and TLC” than the typical property.