I have a zero tolerance policy for people like yourself.

That might be a risk you can tolerate. 

You must operate with a zero tolerance policy when it comes to rent collection.

Your problem is that you live in CA so you're going to get a big fat bill from the FTB each year, so it depends on your income and risk tolerance as to what makes sense for you.

Again, in your situation, I would start looking at and evaluating multifamily properties in the area I want to invest in and decide how many units would meet my investment tolerance because that'll also give me an indication how much of my own money I'll need to come in with, in the event I can obtain seller financing. 

As a matter of fact, the more I learn – the further down the rabbit hole I get and realize how much I DON’T know.The point is – I applied the knowledge I had, figured out what my risk tolerance was, found a deal that fit my criteria and pulled the trigger.

Since this post I have been brought a $43MM REO portfolio in NYC, by a broker I have worked with before and trust, who is one step from the bank, so I can tolerate that, if not ideal.

It's pretty tolerable but I'm trying to gain weight and it's hard when I walk routes every day.

Some ways to combat that variance are by 1) doing a detailed screening on every potential occupant of the unit, 2) having a comprehensive lease that spells out those things that you consider important, 3) taking time to thoroughly walk the tenant through your unit showing and explaining to them how to operate everything, 4) letting them know in no uncertain terms what you will and will not tolerate, and 5) tell them to call you first if they have any questions about the unit.

Another factor to consider is your risk tolerance.