I'm brand new to all things rental properties, I'm gearing up to by my first property OOS in Ohio and live in California. 

Their city government website has information on short-term rentals and how to register for rental licenses/permits.  

As a result, I'll be selling my house and using the gains to put a down payment on a secondary house next to my current rental property.

The current market value of the home is about $645,000.Key Details:Purchase Year: 2020Purchase Price: $415,000Current Market Value: $645,000Mortgage Interest Rate: 2.99%Equity: $320,000Current Monthly Cash Flow: $1,450Return on Equity (ROE): 5.44% (without variable expenses)Return on Investment (ROI): 14.5% (without variable expenses)However, I've noticed some trends that are starting to concern me:- Home prices in my area are slightly reducing, and rental prices are also on the decline.- There are more houses listed for sale and rent in the neighborhood, which is pushing rent values down.- My current lease is up in September and the tenant is leaving, and I expect my monthly cash flow to reduce to $950, lowering my ROE to 3.57% and ROI to 9.5%, again, without variable expenses.- Homes are staying on the rental market for a few weeks, sometimes months, even at lower prices.

I'd say your best strategy would be for a furnished rental either listing on Furnished Finder, Airbnb 30+ day stays, VRBO, or some of the other listing sites. 

I deduct the interest from the rental fee each year if the tenant decides to renew. 

Hypothetical 1031 Exchange question here for one entity with multiple members: If you have an LLC with three people in it holding a rental and all partners decide / agree / vote to sell...

I'd be hesitant to break what is working on properties with a low base just to increase units..can/will rental rates increase on the currently owned units? 

If your parents want a 4 bed two bath and you want a 3 bed 2 bath plus one or two rentals make sure you budget correctly. 

I am here because I'm interested in being a passive real estate investor and it would be a dream to manage my own portfolios of rental properties.