I can tell you what people here have done in Bay Area to set themselves up for retirement.

@Yang ZengYour situation presents a common dilemma for real estate investors: deciding between investing locally where you might be more familiar with the market but face high property prices, or exploring out-of-state opportunities where properties may be more affordable but come with their own set of challenges.Here are some considerations:Risk Tolerance: Take into account your degree of comfort and risk tolerance while managing properties remotely.Objectives: Specify your investing objectives, including cash flow, appreciation, or a combination of the two.Market study: To fully grasp the development potential, employment opportunities, and rental demand of prospective out-of-state markets, do in-depth market study.Hybrid Strategy: Another option is to choose a hybrid strategy, where you invest in a combination of local properties for stability and simpler management, and you set aside some of your portfolio for out-of-state properties for diversity.Before making a decision, it's essential to consult with real estate professionals, conduct in-depth market research, and possibly network with local investors in the markets you're interested in.Remember, there's no one-size-fits-all answer, and the best strategy depends on your financial goals, risk tolerance, and personal preferences.

I set aside 15% for CapEx, Vacancy, and Repairs/Maintenance combined. 

Developing the skill set to source and acquire deals off-market can take years. 

Be well -  Cheers mate,Keep setting the standard for the rest of us 🙏

There are different ways of doing it, but I prefer to set it aside in a different account.

I would set up hookups for water, sewer and electric according to code and write a lease for it that makes sense.

However, the agencies ask for numbers and actual landlord feedback in writing to show them the system needs adjustments.

If I'm in your shoes I would use this as an opportunity to set the tone with the tenant about how you operate as a landlord! 

These rules, which include a requirement that sellers set aside a portion of the purchase price for buyer-agent commissions, prohibitions on modifying the commission, and permission to filter listings by commission, all enable NAR, its co-defendants, and its members to maintain buyer-agent commissions at supra-competitive levels unrelated to brokers’ experience or the services provided, steer home buyers away from lower commission homes, and drive out discounters—among other harms."