What specific areas have you seen to have fairly low vacancy rates?

you can hire lawyer or try anything but chances are very very low that you get any $$. 

I know Eagle rock is the place to be, but also the other one also pays for itself.Eagle rock has a long way to cover its own expenses as the other 2 tenants pay so low rents and does not seem like they will be going anywhere any time soon, so I am not sure if I invest in the Eagle Rock property and carry a large negative for at least next 10 years or go with the Bread and Butter property and stay in a not so good neighborhood.What do you guys think, a better neighborhood or an easier investment in a not so good area?

I have seen some turnkey providers deal analysis sheets and noticed that some do have some questionable assumptions built in (very low/non existent vacancy and maintenance assumptions).

I've found that, once a property hits any list, it's already picked over and there's competition because others also have the list.The best wholesale deals are properties you can buy very cheap in order to resell low enough that an investor can buy it from you and still make their own profit.

Then in 3-5 years you move to your "permanent" house you will have two rental units that most likely pay for both your old home and existing.Because your cost to buy is so low < $5000 you can buy the property, shop for renovation money, maintain an apartment (small studio or 1 bedroom) while the place gets livable.If your partner does basic construction he will know people who can do the heavier stuff, he doesn't do personally.

Each one of them have a flashy websiteOne can invest in the Public REITS, but will not get much diversification from the stocks & bonds & presently have low yields.I understand the step up in basis for the heirs after we pass away, but at some time in the future(in old age) if we decide to not do 1031 Exchange anymore, I suppose we will have to pay the Cap Gain Taxes, only it will be a much larger sum as all the carried over proceeds will be taxed. 

Housing inventory across the U.S. currently stands at a 3.2-months' supply, according to the latest report from the National Association of Realtors.The inventory of homes for sale is low by historical standards, and that represents a seller’s market.

No is low risk, yes is always a risk I try to mitigate.Separation in business decisions is essencial in my opinion.

And the connection to high density / low income housing - aka 1 BR units.