I've not yet done the math to determine which strategy would save me more money, but the big cons of this areNo primary residence, therefore slightly higher interest rates, 20 - 25% down (but depending on the market, this may very well be equivalent to 3.5 - 5% down in LA).Depends on the quality of tenant screening, but it's probably safer to assume that they won't take as great care of the property as I would.Probably need a property manager, professional or tenant.Either strategy seems to net me the same cost around $1,500 monthly, but I'm biased towards Los Angeles as I can rent to friends which solves a lot of the tenant/landlord issues.I'm not looking for anyone to give me all the answers but would appreciate any insight, food for thought, and constructive criticism. 

(Could be possible)We are willing to by coffee, lunch or help out in exchange for just a little bit of your insight.  

Anything else (including an LLC) is considered a rental even if money is not exchanging hands and the person in the home (my daughter) is paying the bills directly. 

Get some ugly sfh fix them up, then sell off the house with the lowest ROI using a 1031 exchange and buy two more ugly homes...wash/rinse/repeat.But look at your market, what is great advice in one area is terrible advice in another.Have fun!

Referrals and kissing a lot of frogs.Another option for you is to look at passive commercial opportunities that comply with 1031 exchanges. 

Ok guys I need some insight before I go insane ..On my personal  residence I recently did a construction loan for a large addition and had a lot of work done .the contractor has been paid through the bank on five different draws according to what he’s done he’s a small outfit so we’ve been very lenient and the inspector from the bank seem to be as well because he ( contractor) would not always complete the work in the draw outline .

Can you provide insight on some of your bullet items? 

I can recommend agents, property managers, and provide insight to the different areas of town that you might want to avoid.

Material breach of rental agreement is easy to proof; however, it is something that can be fixed with reasonable effort or expense, while keeping the contract in effect, it's less likely to be material.I am aware that the California eviction process is simple, however it certainly becomes complicated once the tenant decides to challenge the eviction.Any insight would be greatly appreciated.

Your help and insight is highly appreciated.