After that I plan to focus more on cash-flowing markets out of state. 

Here is our first deal:- We each hold 50/50 of the property on the title (I contributed 80% of downpayment, and he was supposed to contribute 20% to the downpayment, and we got a hard money loan)- after we sold the property, I had to fill out the 539 form for withholding tax in CA.- The partner brought in a cash contributor for his portion (let's say A, who got 50% of my partner's profit, basically 25% of the profit) to the deal and put a lien on the property.

Get a few of those and read them - that way you can start to get familiar with what kinds of things can happen in a house, and how big of a deal it is to fix each one of them.If there are any new houses being built in your area (like, within bike or bus/train range), and the neighborhood is relatively OK, go over to that neighborhood, after the workers have left for the day, and see what building a house looks like. 

Then when I have a good conversation with an owner I set a follow up reminder to call them back after a month or so

Specifically, I'm interested in exploring options that align with a 25% down payment and Debt Service Coverage Ratio (DSCR) loan.If you're a seasoned broker familiar with Birmingham real estate and have a track record of success with investment properties, I'd love to connect.

I have read on here that hiring a property manager for out of state rentals include the service of them collecting your rent for you.

@Anthony DelVecchio you don't have to sell the property after you live there for one year.  

It's supposed to ensure there are no surprises after closing.

Market OverviewThe Los Angeles self-storage market showed signs of stabilization in Q1 2024 after experiencing some softening in 2023.

Mortgage, Taxes, Insurance, HOA: $3040.37Estimated rent: $2475Total Expenses: $3660.12Vacancy (5%): $123.75Repairs (5%): $123.75Capital Expenditures: $100Property Management (11%): $272.25Information when I bought the house in 2022, new constructions Purchase Price: $373000Purchase Closing costs: $4662Current home value: 400k-420kCash Flow: $2475-$3660.12= -$1185.12; -$71107.2 at 5 yearsCash on Cash Return on Investment (CoCROI): 0%Appretiation per year (6%); $535,290.23 at 5 yearsEquity: Loan value $345,089.53 at 5 years; $190,200.47 in equity at 5 yearsLoan Value today 6/2024: $368,201.59Total ROI in 5 years= (Total profit/Total Invested capital)/ Time (in years); Total profit: $190,200.47Total Invested: $71107.2 (neg cash flow) + $42757 (closing sale costs)= $113,864.20Total ROI (5 years)= ROI 67%, annualized ROI 10.8%My biggest concern is that I am relying solely on appreciation and assuming will appreciate at 6% per year.