Cashflow from rents will be tax deferred and if you’re pursuing this as a business, it can be deferred indefinitely.

Do you think the deal would be worth pursuing under those circumstances?

My second reasoning is as you said, California is not a landlord friendly state so I would like to pursue a rental somewhere that is. 

We want to reach financial freedom so that we can have more freedom with our time and pursue passion projects that may not be as lucrative as our jobs we currently have and to be able to spend more time with family and friends while we are younger. 

Is it possible for me to still pursue my tax strategy with this set up?

I'm looking for advice from those that have done something similar and if you'd recommend pursuing this.

This house currently has no renter though they are actively looking to put one in the home.House 5. rents for $725/m the loan will cost me $13,000 as a down payment and $6,000 closing costs, and should cash flow approx $275/m after mortgage payment are made.House 6. rents for $725/m the loan will cost me $14,000 as a down payment and $6,000 closing costs, and should cash flow approx $250/m after mortgage payment are made.To be able to make this down payment I have the option to:HELOC my current home which cost me about $850/m in repayments OR I can find a hard money lender who would be interested in working with me, I am currently putting together a hard money lender proposal to show a couple family members that would basically look like this: No repayment in the first 12 months, all income going into an account to allow for repairs and emergencies, after that taking the cash flow and splitting it 75/25 to the lender paying it off in approximately 13 years, sooner if we can make extra payments on it and giving the lender an 8% return on his money(about .5% less than what I was quoted for my HELOC).ORI can potentially do a deal with my brother who is also looking to get into real estate and we split the properties 3 a piece.These properties are right outside of a military base in a low income city but have done well for the family currently owning them with consistent long term renters in them.I am looking for any advice as to whether or not this is a deal worth pursuing.

I am wondering if any of you pursued creating rentals using this idea and what you've learned from it.

However texting messaging them can be dangerous if not done properly and could lead to potential lawsuits, so do your own due diligence before pursuing that avenue.

My short-term goals are to purchase one property a year for the next 3-5 years through house hacking but I am also interested in learning about and pursuing other strategies in real estate investing.