If you're more interested in flipping then that short-term cycle is going to be more important. 

Anybody have experience with short sales?

What type of asset is in short supply? 

Percentages vary depending on your strategy but here is generally how I use my excess cash from this portfolio: Say you have extra 1,000 bucks after paying your monthly expenses and putting aside money for reserves: I split it out in the following manner. 1) Additional rainy day fund for CAPEX and repairs. 10% 2) Additional Acquisitions budget 50% 3) Additional Debt paydown 25% 4) Stocks / Bonds/ Pay myself. 15% I definitely prescribe to the pay myself first , and have a more conservative approach when dealing with debt .

The PM can make or break you--being remote, you will basically be at their mercy to deal with problematic tenants, find tenants and keep vacancy low, collect your money, find contractors... in short, every aspect of actually running the business. 

Some did good but few had bad luck with tenants/vacancy/ or other emergency that hindered with mortgage payments and had their properties go into short sale or foreclosure even with a decent paying full time job.

In short, CA is very business friendly, landlord friendly...not.b) And how do you propose to "separate out asset holding from operations side" ?

When that life emergency happens and a tenant can’t work, even for a short time, section 8 kicks in more rent so you still get paid. 

This is done often in short sales when the irs receives nothing.

One particular strategy that interests me a great deal is short-term corporate rentals.