I know the market here in California is very much inflated at this point, but I thought I could maybe still make something work with FHA financing before I completely give up on California.

I live in 30318 and agree with Evan - I purchased a new construction home there for $425K and a year later smaller new construction homes next door to me have been selling for $500K+I think the prices are inflated right now because it's a super hot market - we'll see how long that lasts (for my own property value I hope it keeps going up!!).

Market prices here are pretty inflated and with our income we don’t qualify for much here.

He did however inflate the potential earnings and ROI without getting into much detail.

Between rising rent, mortgage pay down, tax benefits and possible appreciation this will be win long term.

When searching for "Traditional" (Buy and Hold) rentals, the top listings either greatly under estimated the rehab costs or seemed to have an inflated rental rate. 

I'd add a tax increase YoY and inflation expense.

Same 3% inflation for selling = $134400 for 1 house or $672000 for 5 houses.

I mean I can see slowing down for sure.. or prices stop rising like they have but what would create a crash this time around.. 

The corp tax reduction to bring business back and company use the money to buy back stocks inflate the Wall Street.