Tim, in lieu of a damage deposit, have you utilized A deposit insurance such as Rhino? 

They offer interest-only loans, don't charge for appraisals unless the deal actually closes, and have great customer service (they actually close on time unlike some of the lenders my clients have chosen against my advice over the years who ask for my time for underwriting the day before closing).

Then moved out and we're sharing another house hack with less than $200 out of pocket monthly for utilities and internet while using 3 bedrooms and a bonus room for ourselves.

I, like you run my firs duplex with the same culture of focusing on customer service.

Hi Radhika-Congratulations on being a homemaker with young kids and looking to do more for the family financially now that the kids are older.You have 50K to get started but are having difficulty choosing markets and deciding where to begin and you are thinking about single-family long-term rentals out of state because you live in California.I would encourage you to start with duplexes, preferably with 2 bedrooms in each unit for tenant longevity, and ideally with separate utilities.

I appreciate the input Danielle ...I see some of these virtual mailbox companies have an app and you can see what mail has been received on the app, while others allow mail forwarding ... are you utilizing any of this or just using the physical address for your LLC paperwork to be delivered?   

Validate planning zoning requirements and access to utilities.

What are the average utility costs, and who typically pays them (tenant/owner)?

I decided to get liscenced as a home inspector and utilize my knowledge in building science so I can add value to others but also so that I could immerse myself in the real estate industry and show investors that I am taking this seriously.

Your approach to investing in real estate through purchasing foreclosed homes at local auctions and utilizing the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy, especially with a focus on Section 8 housing, is a proactive and potentially lucrative path.