I'm proud of you, and keep us posted on your journey! 

Otherwise, 30% of your cash flow will "keep" going out the door.Go to your local Car wash and vet their operations to automate.If you're dying to invest. 

I keep all my real estate Investments in Kentucky. 7% or more is the norm for single family residential while in California you most likely land around 3%-3.5% cashflow, you're not even close to cover the interest rate.Definitely check out Midwest states, they offer low entry point and stable rental market.

In many instances a bankruptcy is the best outcome for everyone as it keeps the borrower in their home while reorganizing their debts. 

His question was about areas to avoid, which was a little more specific than many similar posts asking about neighborhoods. 

I intend to set up a Revocable Trust with specific instructions on how my real estate is to continue being held because I know everyone’s first instinct will be to sell it and take the money.My plan is for the real estate to keep operating as it does now and putting management in place so it continues to generate passive income for everyone for a long time.

So my question is: if I wanted to save on the recording costs, keep the deed for my records, proactively pay taxes as they're billed (would coordinate with the company I buy the CFD from), then work with the borrower to get the deed recorded under their name once they've paid off the contract--am I putting myself at risk? 

SFH's are great but its a better bang for the buck if you can find a 2-4 unit in most cases a even a duplex.If you ever have any specific questions feel free to reach out I am always open to talk REI.

Our over all objective is to hold the house for equity growth and future financial freedom, but is it worth potentially just breaking even or having a small monthly expense to keep the homes? 

Single Family rent in Austin is currently Flat YOY (down 0.05%) How are you keeping your investments afloat in this market?