I will definitely get going on getting the houses in tip top shape and get them ready for the market.I would like to keep my holdings in California in possible, but I am not seeing anything in Sacramento that makes it worthwhile of executing a 1031 exchange at the moment.I will definitely do my due diligence and interview property managers along with verifying their references.Since this will be my first multifamily investment, I probably will be conservative and used the cash flow generated to amass the capital needed for future investment. 

In other words, GRITTY people persevere in the face of challenges to achieve a better future.

Let your realtor friend that you appreciate his time but are changing your approach and you will "keep him in mind in the future"...There are a lot of realtors who can sell you a house. 

In other words, GRITTY people persevere in the face of challenges to achieve a better future.

But it is what it is for now...perhaps they'll extend it in the future.

In the future, I recommend you use an estoppel certificate during your inspection phase.

I have no idea if you intend to buy-and-hold, flip, or do something else, but you'll have time to change it in the future. 

Business is going great and I cant keep expanding without having legal help to set up properly in the future. 

So, if you want to refinance in the future, it may not add anything to your valueDuplexes may appraise as less than a single family house and thus you might even lower your value.

Then in the future if one leaves, allow them to find another suitable roommate, as long as they will meet your qualifications.