On the other hand, too much leverage is risky if the market downturns and you need to liquidate.

Contrary, if you have zero experience then you might want to consider something more simple such as syndication or buying into a note fund. 

If you don't have it in your hand, you don't "own" it.

It sounds like you have a problem tenant on your hand.

On the other hand what are my odds doing STR there?

Finished reading Brandon turners book on rental property investing, listening to a handful of podcasts, and gathering more and more information.

@Nadjib Rusangwa I say this without trying to offend, but if you walked into just one title company (without a deal to bring them in hand) I am not surprised you haven't found a title company yet.

Also, my husband especially, would like for us to move into more "hands off" investments even if that means somewhat lower returns.I have seen Delaware Statutory Trusts advertised as a vehicle for investing 1031 funds.

Please click on the links, give them a read, and share your thoughts in the comments.First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bpThe second is a post that will help get you focused with your real estate investing goals:https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciatedThe last one is a post that will help you choose an “investor friendly” real estate agent.

This is very common in California, as you are experiencing.Consider this:(Annual Cash Flow + Annual Appreciation) / Total Investment = ROIIf you bought the house (simple numbers) at $500,000.