otherwise i agree with the others - 50K just isn't enough...Hi Nicholas I’m starting to rethink my strategy and what would be the best option to get my foot in the door.

You have all brought up some great concerns regarding depreciation recapture and tax free gains vs tax deferrals, I think I need to zoom out and look at the bigger picture when comparing all options.

@Caleb Kim  isn't 3 boilers a bit of a pricey option? 

Sounds like a good plan - from a financing perspective, its a good idea to start researching now - for better or for worse, a lot of lenders view 1st time investors without a primary residence with a owner-occupied mortgage as a flag and might limit some options

Sacramento is a great option if you want to stay in California, or choose another cashflow positive market.

I will explore my PM options and ensure I explain the fact that the property may need “more attention and TLC” than the typical property.

There are some great options in Columbus and Cleveland (two top-growing cities)! 

Unfortunately, we found out that we could not use this option since the property used window units for A/C which was not accepted for FHA financing.

Wish I had a better answer, but that's the best option...

Use one that has flexible pricing/spending options, memberships for discount pricing (these often pay for themselves with your first list). let me know if you need specific information about skip tracing