What cost-effective options are out there? 

Could that be an option?

All of these trends are positive on a local level, the cause it tough for sure, but these small towns are benefiting. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

We have an opportunity to live in one of our dream locations in a wonderful space, so I’m exploring all options before making a decision.

I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation.

After a tenant has been evicted in Washington County, MD, and there is still an outstanding balance even after applying the tenant’s security deposit, are my only options for collection limited to small claims court and utilizing a collection agency?

Try to narrow down your options to the top 3-4.

Also, our portfolio is very heavily concentrated in RE, diversification is seen as a positive at this point. 

I live in Southern California and want to start investing in property and grow that, I only have $30k-$40k what are my best options?