In general:-Always always always have primary residence first because when selling, first 500k (MFJ) is guaranteed tax-free-To become RE investor you do NOT even need to have rental, your primary is actually the best investment due to regulation above- In a decade, most houses are doubled or tripled in value if you bought at hot area.- When you plan to buy rental, buy rental that's cheaper than your primary- Depreciation is captured from building only on the first tax year so your example almost not possible in real world scenario- The PAL is extremely useful when you have other RE investments, this is what RE pro keeps doing to avoid large tax gains, for example if you have 5 syndication and 1 syndication post a hefty gain, the other 4 syndication PAL is used to offset that gain. 

I am both impressed and a little dumbfounded you have 30+ places in a hot metro like San Diego and are asking how to find buyers. 

The rental market is still hot in Texas for B and C class rentals.

Install one clawfoot tub (today people only dream of these), run garden hose  under the house from the hot/cold water line in the kitchen to the tub.

Triplexes are not really a thing - I have only seen one real one that was built like that - everything else is a duplex with a finished attic causing all sorts of issues, from parking to roof insulation - most contractors don't know how to build out what is called a hot roof and simply slap on some bat insulation and then drywall over it.

Keep in mind that your gas bill also includes your hot water tank/tanks typically in this type of setup.

Hey fello BP Comrades, I invest in Lubbock Tx currently but have 1 SFR SE of Birmingham and used to live there and it seems this market is easier to find deals compared to West Texas where its super hot.

It usually requires the investor to go straight to owner and build rapport with the seller. 100% LTV in this hot market, in addition to the fact that you are new investors, is going to make it even more difficult to find willing owners to provide financing.

List my Cleveland investment properties for sale immediately while the market is hot

You can jump right into real estate thinking you are a hot genius because you have a little extended education, purchase a house, make a few thousand dollars and think you are the king of a real estate empire and you will never ever be really rich.'