There have also been a **** ton of expected and unexpected issues with the house so I really need to increase my reserve to further protect myself.I still want to continue investing but my current funds are nowhere near where they need to be to consider using my own money to get into the second property.

Accidents. ...3.

We all know lenders can be shady especially when it comes to re-trades, last minute bait-n-switches, unexpected closing costs, or the infamous "we'll get back to you in 24-48 hours" line. 

Could be an auto accident headed to court, it is unknown if the owner will be liable.  

The other part of your post indicates that you do not have cash on hand and your parents’ unexpected medical bills “and so on” suggests to me that you facing monthly expenses that are not predictable and full of surprises.

Like @ChrisSeveney said before already, worse neighborhoods will often come with more unexpected/miscellaneous expenses.

@Steve Kontos I am from NYC priced out of nyc thinking of investing out of state can you share some tips if u were starting out new like me ... what steps would u take to minimize costly mistakes cash flow is super important to me appreciation as well but need more monthly cash flow so thinking of only investing in 4 plex to create cushion if things go wrong with tenants or unexpected high price item breakdowns  

So even if you pick a state with stronger protections like WY or NV, the cause of action arose in the state where the tenant fell, so likely that the court where the accident happened would have jurisdiction.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

As I was listening I was like damn I did that by accident haha

Thanks for sharing how a project can go sideways in entirely unexpected ways and the dangers that HMLs could pose if that happens.Best of luck on the next one.