CapEx would go ideally below the line (so after your Net Operating Income), but you could account in the expenses a repair and maintenance reserve so yeah would agree to have something in there. 

For starters, I would like to be able to live off of the income from rental properties 2-3 years after making my first deal. 

Even though NY may be a better market does that make up for 1/3 less of net income over the years?

Do you plan on using some sort of accounting software to keep track of income and expenses?

By assigning the option you can still sell it down the road without having to hold it for a year to get capital gains vs income tax treatment.

Secondary units have some unique advantages in Berkeley and Oakland due to recent changes to regulations.Aaaaaaaaaand Fannie Mae is allowing rental income from in-law units to be used as qualifying income as of very recently.

No problem w/that but you also state you are working a full time job and ultimately you want passive income.  

The more property we buy, the more monthly income, and more forced appreciation we can create with sweat equity, and our paper net worth increases nicely as well. 

I’m happy to announce that after a LONG 2.5 year process, as of July 25th, I passed my 2nd NRC Exam in my long career in nuclear power.So here’s my story in purchasing my first duplex…Around June or July 2015 I was trying to figure out how to buy a property outside of my SDIRA to increase my personal income.

Your income varies widely.