Hello all -I am new to the real estate investment world and am still in the "fact finding" stage.

I have a full-time job, but in my spare time started calling a list of 150 absentee owners in a small mile radius and have put a 3 unit, a SFH, and hopefully another SFH (the last SFH is in the closing stages of negotiations) under contract making very minimal calls/week.  

My CPA is all on board.I don't know if you're in the same boat as I where your CPA feels some of your deductions are not the type that goes on the schedule E, or excessive, if you're audited.

@Julius Gonzales  considering your question i think that the most important thing you can do for yourself at this stage is to get education. 

That seems excessive?!

At that point I will be making slightly more than I am now, after that comes stage 2 which is to scale to $10k per month in income and possibly $15k for the long haul if it is necessary.

At the beginning, if you lack experience and education, then you bring in excess cash to a deal to learn the process.

This will not help you against excessive damage, but it will help if tenant skips out on rent. 

CEA is not permitted to file for bankruptcy protection, and I believe if they get an excess of claims they prorate payments.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.