In general states with income tax (CA) should avoid doing RE investing in states with high property tax even though I know of some San Diego RE investors that appear to have done very good investing in Texas (@Cody L.).Your cash flow on the Texas properties do not appear to have cap expense or vacancy factored in (and possibly not insurance or maintenance). 

If we cannot find something that makes sense, we are open to other options, possibly flipping a house or apartment.The Goal:My short term goal is to find a duplex in Los Angeles to House Hack.

You want your tax assessed value to be as low as possible so your taxes are as low as possible.  

What, if any, are her options & is there any way possible for this to be my first wholesale transaction? 

Is it possible to get tricked into releasing it without being paid?

I was wondering if it's possible to take 20 K out of it to put a down payment on a second investment property and would that even be advisable.

Could you please tell me how you plan to weather a possible down turn with such a high level of leverage? 

I'm sure they'd be more than happy to show you the property and possibly even be a dual agent.

I've thought about possibly putting it into my name and refinancing and then renting, however I am a fulltime nanny with a weekend job as well.

I know what duplex to quad sell at (possibly every single one in my market).