Now its destroyed.The amount of take home pay with the 5 units is practically Taco Bell wage after all the taxes insurance and expenses.

Hello,  I've been putting offers in on for my first rental property (single family homes out of an HOA).

Any suggestions for newbies looking for more inexpensive homes?

The market for buyers on QCD is going to be smaller so you are limiting your market with a QCD but we buy/sell homes all the time via QCD just need to find the right parties.  

You should know the rules inside out or be working with the professionals that know it.Incorrect moves can result in not only a taxable event to you but to your investors.Based on your most recent response, i do not think you have a good understanding of1) requirements of the QOF(You may need to substantially improve a property)2) How long you need to hold a property before it can be sold to exclude the gain3) Inside basis vs outside basisBest of luck

Is a store like Home Depot the spot to get these items?

It should not matter if they classify it as 'Barney the purple dinosaur' for taxes, the property's comparable sales are other two unit homes that will sell as two unit homes.

Mind you, the median price of a home sold in Los Angeles lately is about $950k.

and the fact that rent goes up overtime as well.I know some will keep pulling money out of rentals to buy more or use the money elsewhere, but then they have very little equity in the home. 

Has anyone used their VA home loan to purchase a multi-family unit and move into 1 of the units??