Also, you are paying ordinary tax on commission income (1099 ) but saving capital gain tax on the commission expense.

The longer you hold, the more major capital expenses will be needed (roof, HVAC, plumbing, electrical, etc.) 

As far as your circumstance with capital gains goes, there is a "unforeseen circumstances" in the tax laws (or at least used to be) that may allow you to sell without penalties.

You didn't say how much capital you have to invest and what your goals are but the more doors under one roof the better!

Or better yet,  gain experience, learning the ropes, by participating in a real deal.I don't come empty handed as I can offer my contracting/estimating/realtor experience, $ capital, and/or fulfill whatever roles are needed.I'm in the Northern Virginia area but willing to participate anywhere in the mid atlantic or south east.Hope to hear from you!

One part that struck me was about capital improvements and placing your property in service.

You can buy 2-3 cash flowing properties with the capital you make from the sale of your house in Cali.

I could also tailor my building for highest and best use in my market area, such as capitalizing on an under supply of 1 bed or 2 bed apartments. 

Before we finalized the offer on the properties, we ran out a 3 year capital expense plan to account for improving the properties that need it, either with deferred repairs or value add improvements.

The 2 other partners would be putting the majority of the capital down and I would be the general manager.