They won't stay if they can't plug in a cell phone without tripping a breaker or if the neighbors use all the hot water and they end up taking a cold shower.

I'd like to thank everyone for the advises/suggestions and wanted to give an update.  

However, I will stay away from CA because I have this fear of earthquakes, besides loving snow!

I give new tenants a guarantee of rent rate to stay the same for 6 months and if they terminate prior to 6 months I charge a $250.00 redecorating fee off their security deposit. and  it has worked I seldom have had anyone stay less than a year and average is 2-4 years...

Flips can be means to an end if your wanting to try to build cash.Best of luck and keep us updated on your progress.

Your 401k should stay out of it...

My wife and I will be starting a family soon and want the income to allow her to stay at home. 

Stay in touch! 

Maybe make some cosmetic updates and list is for rent closer to 600-800 if you think the market will support it.

Of course you can be more choosy about what you want to offer on, and maybe find properties that at least look like they need some updating, but most importantly make a lot of offers.