If not, it is what it is and if you personally want to move to Texas than so be it and you may need to sell it.Now, if you can keep the first one and still afford a second one then great.

was thinking of letting them know I leg rent more than a certain amount here in California unless that person decided to move out and one of their other not on the contract tenants signed a new lease at the higher rate?  

As I've been learning, there are the key taxes to understand when investing into a new area or state:- State business income tax (if you have an LLC)- State personal income tax (if they want to tax you too, even as an out-of-state investor)- City personal or business income taxes- Any registration fees due the city/state- City/state property taxesAnd I'm sure more!

BUT, this is personal preference, if you are trying to make this a passive investment and don’t want to be cutting the lawn, then 5% is probably fine.Hopefully this helps!

You can close in an LLC if that's a concern, and many times the debt isn't reported to personal credit.

The doctor found out that I was going to visit those 10 to speak in person with the borrowers and try to decide on the best course of action.  

Personally, I don't like anything that pay money that is no connected to an agent doing deals but I can see the appeal.

You may or may not have a personal guarantee, but probably will.  

Personally I’d have them start saving up and get traditional financing and pay you off.

However, nothing tops in-person connection.