@Clarence Powell Start with a specific plan for your businessIdentify your farm areaGet a contract ready so that you're prepared to make offers on properties as soon as you find themStart MarketingPut together a buyers listRemain patient, methodical and consistent, it can take months to get your first deal, keep at it and you'll increase your chance of success

For example if the property is $100k and a 5% increase or $5k breaks the deal for you, it may be time to beef up your reserves.

(military isn't bad, but new leases every year or so from what I've heard and very few casino workers as the closest one to yucca valley is 29 palms)I have found the area to be very misunderstood - as people driving by assume meth labs, sex offenders and neonazis  ---  when instead you find millionaire horse/animal lovers, older retirees who feel like they have found shangri-la, and an increasing amount of younger LGBT creative folks re-creating identity in the serenity of the desert. also, $15/hr minimum wage law is underway - going up $1 a year until $15 in 2020. 

So while the subsequent tax bills will not include the interest and penalties that were included in the tax sale amount, it will have an increase of about $1000 in taxes assessed because the homestead exemption will be removed.

Rent has gone up (and will continue to) and property prices have increased (and will probably continue to).

Yes, HOA has been increasing over the years and eating more of my cash flow.

As part of your side of the story, try to show national data where rentals have increased over the past 20 years compared to ownership.

Equity is not really investing or increasing cash flow it is simply a expensive way to buy cash flow and park cash you have no other use for.

I would increase your vacancy percentage a bit (3% is kind of low), and lower the misc. deduction as that seems kind of high.  

While it is possible the increase pressure could cause some leaks if the pipes are rusted, its not likely if your not seeing problems currently.