Hey @Maxwell Lee, I don't think anyone has mentioned this but sometimes larger, higher end properties can actually have the highest return. 

People who can point it out to us that there are places you just want to avoid and others that will give us a better return for our money.To everyone else, Thank you for the feel back and comments. 

Let me put that another way: if they were presenting on the CNBC show "Shark Tank" what would they be offering as a financial return for my investment and over what period of time?

So a CA investor pays the higher property taxes and then pays state income taxes on their personal return - wahoo!

Where is the return on your investment?

To piggy back off sticking with 4 units or less which will allow you to put less money down for a residential loan vs commercial loan there are added benefits when it comes to cash on cash returns - which in my opinion is a great way to measure an investment. 

They will need to see the last few years tax returns, bank statements for the last 6-12 months, pay statement, and probably have you fill out a personal financial statement showing assets and liabilities.You don't want to wait until you have something under contract to do this.

You can't keep rent for months that you kicked them out.You could require that the walls be returned to the color and condition they were in when they vacate, and use the deposit to cover it.

We work with each broker directly, sending them deals we like, and in return they send us deals (both on and off market) to evaluate.  

You accept greater risk in making investments, and in return you expect a greater potential reward.