I've had a couple of people suggest to me to 1031 exchange my SFH here to buy multi-unit OOS or many SFHs...sounds like huge headache venturing into the unknown and all those tenants, repairs, capital expenses etc. 

You may be able to reduce coverage by moving the limits so it is not replacement value.

Sounds like you're working with an agent, no worries, happy to still advise. 

The more I read about OOS investing the less appealingly it sounds. 

My long-term goal is to replace my income with passive income to not have rely on my day job.

Some older annuities are not competitive and can be replaced (1035 exchange for more competitive annuities) or surrendered to invest in other asset classes such as real estate.  

And hopefully that means more deals  for the sound investor out there.

Sounds like you need a property manager……

Buy your wife flowers.Hey @Daniel K Houck - first thing, congrats on achieving the dream of having a beautiful family with a solid wife that loves you enough to have 4 children :)Second, is sounds like you are comparing yourself to the people on the podcast - don't.

This is one of the main reasons people go with DSCR Loans or other similar options versus conventional - ability to do LLC, especially with the BRRRR Method (which sounds like what you are doing).PS - heres an article published on BP which includes pros/cons/differences on financing options for BRRRRR hard money/refis https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...