Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

But it is better to prove your case by comparing your property with other sold properties.Remember, once you improve the value (new roof, windows, siding, electrical, kitchen, bathrooms, etc) then the tax valuation should properly increase.The county adjusts values every three years.Good luckBob

I'm also toying with the idea of a large balloon pmt at the end of a short term. 

Do you think it is a good idea to have a lender from the state you want to purchase? 

As far a business ideas go - I have always liked providing a service as opposed to a product, so I think this fits that window. 

I Appreciate the ideas I think just paying cash and refining into a portfolio loan would just make it a faster process at this point. 

Real Estate Rookie by Ashley Kehr does a good job of painting a very clear picture of that as well as other fundamental ideas, it is very basic but does a good job of overviewing all of REI. 

However, if the home has little cash flow return would it really be a good idea to share an asset with friends with no short term returns? 

suggestions on how to achieve cash flow and have place to stay few months in a year   (probably duplex / multi plex and have one unit for me )  Hawaii areas STR is very challenging to make cash flow with current prices/mrtgtrue, still checking the ideas.... probably long shot ,not sure if its worth digging. what do you suggest for investment purposes 

Any thoughts if am going in proper direction ?