I am interested in looking out of state in the near by states (Nevada and Arizona) as they are still drivable, minimizing travel costs but lower priced than many of the areas of Southern California.

With FB there is minimal  room for mistakes.

We got an FHA loan on it and since my wife is a realtor, we got 3% right back, so we put very minimal down.  3 of the 4 rents equal PITI so we'll live there for a year then move out.  

To keep any new investor as a lender only should help minimize that risk.  

Similarly, my capital is minimal.

In your case you can sell without tax implications so it's sort of a moot point but the goal to shoot for with real estate is to keep letting your investment grow with minimal tax implications for as long as you can.  

The obvious thing to me (and probably to everyone else, so I'm not sure there are as many of these properties as I think) is to buy undervalued properties and sell them, and just do minor things... like painting that I can do myself and that are quick with minimal holding costs to build up cash, and ability to get financing.  

The increase in payment is minimal compared to the 30 yr due to lower rates on the 15 yr.

Oakland has a punitive transfer tax--1.5% of the sales price plus the (minimal) county transfer tax.  

Minimal cash flow for 15 years and then all flow forever, or greater flow for 30 years before you own it outright.Again, without a ton of info I can only use our numbers as a comparison so if you are self-managing, self-maintaining, putting more than 20% down, etc. things may be different.