Preparation is going to help you reduce some of the fear and anxiety.    

The actual cash flow increases at a rate that approximates the rent appreciation which in recent years has been great.Are you prepared to supplement initial negative cash flow to a time in the future when the RE has actual cash flow?

Situation: I live in California and I currently own a rental property in Indianapolis and preparing to get my second rental property.

You should speak with a lender ahead of time to know what your options are and what hoops you will have to jump through so that you can be prepared when you find the deal.

All preparation took months and months.

They won't do it and will move out at end of lease so be prepared.

So I live in the Saint Louis area, and I am looking for a Multi-family home (Duplex or Triplex) to buy in the Western, Southwestern, or Southern Suburbs of Saint Louis.  I'm looking to "house-hack" with this first pro...

You must prepare a form 3115 Change in Accounting Method in the current year to correct prior years and get the record set properly for going forward.The form is not for the faint of heart. 

I knew the answer I was hoping there was some kind of creative loophole around it all, anyway thanks for advice everyone

While others may choose to use more creative financing techniques, I have found that when I do the numbers, many of those techniques reduce cash flow to the point that a great deal is hardly even a good deal.