That being said, the new goal is to find a SFH that can cover the mortgage while I save for more properties and ultimately provide positive cash flow when I decide to move out in the future.

It worked out fine for me and the new place is cash positive. 

You may need to change your strategy and surround yourself with more positive people, network with more real estate agents so they can bring you off market deals. 

Always position yourself one-step ahead of the tenant and anticipate their moves and counter-moves.

Removing the tree shows that you are not the negligent type and would be seen as a positive for you, not an admission of guilt. 

The formula is simple and is as follows, 75% of gross rent - PITI = net rental income.If net rental income is positive its added to your total income and improves your purchasing power.If net rental income is negative then its considered a liability similar to a credit card or a car loan that you gotta qualify for.Some banks have "overlays," or additional requirements they place on top of borrowers when you have rapid acquisitions of multiple properties but by no means is 2 properties in one year considered "rapid," by most lenders, however 3-5 would be its an underwriter and case by case bank "call," to make. 

You will find plenty of other people in your exact position - CA, NY, or HI residents who need to look outside their own inflated markets.

A lease option puts you in position of principal.

However, I have a lot of experience and if you're just starting out you should assume you'll mess up the first few deals you do.Also, I'm in a position where I want to transition to being less active so I'm slowly transitioning into things like Syndications, Funds and REITS.

It’s hard to do sometimes but you want to spend your time with a positive mindset and moving forward.