I'd have to feel very confident that I could do a certain amount of volume annually before ever considering making the switch to full time.

@Scott Wolf thanks for your input as well.

Although immediate replacement may not appear necessary at this time, we recommend maintenance be performed on a regular basis with annual inspection by a qualified roofing contractor.

Keep in mind the land value needs to be removed for calculating your new annual depreciation amount.Also, if the property inherited has multiple owners, owned by a trust with multiple beneficiaries, etc.. then the depreciation calculation and step up percentage may change and will need further review by a professional.   

In fact, I'm a neighbor, living in Laguna Woods, near you.Let’s look a little closer at those options:Option #1 Pay $100,00 cash to purchase a house in-fullMonthly rent: $800Monthly cashflow:  $300 (after expenses and an allowance for vacancies, misc*)Annual profit: $3,600Home value after one year (4% increase): $104,000Advantages Don’t have mortgage payments100% equity to borrow against if neededHigh monthly incomeCan deduct depreciation on taxesOnly one tenant to deal withIf you lose your tenant, you don’t have to worry about covering a mortgage each monthDisadvantages Can’t deduct mortgage interestNot enough cash flow to save for bigger emergenciesIf you lose your tenant you will have 100% vacancyCannot force appreciation.

Basically, the property has gross rents of $29,700 annually.

My goal like any investor is to make a sizeable return on an annual basis.

The bank gets a copy of the tax assessments and updates it annually. 

(separating utilities, cosmetic repairs to the exterior etc).Rent was raised for 2019 and is fully occupied on annual leases.

When I ran my HML company in Oakland in the late 80s we had 250 note investors.most were 200 to 500k out making 12 to 15% annually..