There may be several options for remediation depending on the state and applicable regulatory context.

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.

I have always wondered about Belize.

@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

Hi Mariana, Cleveland and Columbus both have some great options. 

I was wondering if there are any potential tax deductions we could take as a passive investor. 

we live in Ontario and invest in Detroit  and I love the city  but one has to be more the careful and make sure their team on the gourd is outstanding...but the returns are great  and the people we have met have been wonderful  more then willing to share out story with anyone who wants to chat

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