My boyfriend and I currently own a rental property in Pittsburgh and we are planning to move to CA next summer for career opportunities.

I've just recently began to implement the owner financing and Subject-to opportunities in my options when offering on deals, but would I be able to do this with pre-foreclosures?

It drives me nuts that I don't have at least a small single family yet,  I'm keeping my eyes open for other partnership opportunities, but I've also realized that I may need to put hustle into helping others close deals to further put myself in position to myself.

Having the opportunity to own my next home outright.

The IRS always views entity transfers like that as an opportunity to basis shift or a potential step transaction - either deliberately or accidental. 

I heard it's a lot of opportunity and big things can be done.

After you spent more money on repairs and improvements your cash on cash return may still be below 10%.Now compare this number with the opportunity of passive investing with a pool of other investors into the apartment building or commercial real estate.  

However, I'm wondering if I am missing an opportunity here, if anyone has knowledge of the potential pitfalls, or if there is anything that could be misconstrued into a legal issue.

They will both cash flow well, but don't really provide the opportunity to gain the equity to get my family to our long term goal of being financially free within the next 15 years. 

They will both cash flow well, but don't really provide the opportunity to gain the equity to get my family to our long term goal of being financially free within the next 15 years.