Working with someone with proper knowledge about the market you're looking in is imperative for this.

You can invest in both CA and out of state and experience what works better for you and your lifestyle and goals. 

You have to know how to run it properly.

Yes, you will likely pay close to or at retail value if you are buying a quality property that has been properly renovated. 

Short answer to your questions is if you have a properly set up LLC then all transactions (lease agreements, invoices, etc) are under the entity name.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Your bio says "Denver" but that could mean a lot of things and there are significantly different rules on renting out your property whether you're in Arvada, Westminster, Aurora, Denver proper, etc, etc.

If you have never done this as a full time business I will throw caution to the wind it is not as easy or as profitable as online forums make it out to be, and if you need money for living this probably is not going to sustain your lifestyle for the first several years. 

Any more than this, and I feel that I am paying for their luxury lifestyle before getting returns delivered. 

It is a fantastic lifestyle (for the most part).