More than one way to skin a cat.

However, like everybody mentioned before me, those houses needs full updates.Especially mechanical and electric service upgrades.Most likely, they work on older wiring.If you don't update it now, it would be fine, but if you decide to change it to central air etc... it will not be enough to support the new system.I would budget everything, and make smart upgrades.

There are some models that provide total flexibility in training and support - which is what I had to seek out to be successful. 

If you build an experienced renovation loan team around you (experienced lender, contractor, and consultant) you can have a nice support system there to guide you on your first one, which was a big help for me!

I have to admit there is so much to cover and it is a little overwhelming, however, from what I have read this seems to be a very supportive community. 

I am not on the 1031 exchange but I will be providing support for loans, income, etc.Scenario 1: Purchase 1st, 2nd, 3rd property with 1031 exchange X amount fulfilling transaction and all requirements for exchange granted all financing is approved and completed.Scenario 2: Purchase 1st property with 1031 exchange under parters name only, fulfill requirements for exchange, acquire rest of funds with no tax, then complete 2nd and 3rd property transaction with funds on my name only.Scenario 3: Purchase 1st property all cash with 1031 exchange, HELOC on 1st property to acquire property 2 and 3.Look forward to hearing what the BP community can assist with and allow me to learn through this processThank you!

@Minka Sha don’t forget 3 very important things. 1) your principal pay down, is probably $400-500/month.2) rent growth - PB is very desirable and rents will likely continue to go up over time 3) appreciation - coastal CA will always be in demand which will fuel appreciation You bought it with 5% down so have very little skin in the game. $1000/month loss like @Dan Heuschele calculated is tough to swallow but I’d guess you’re breaking even if you include principal pay down and appreciation.

If it's an older property, you may be looking at a support system under the floor that is starting to fall apart.

@Joe Jor @Marlen Weber @Brandon McNulty Thank you guys for the support, I truly appreciate it. 

By eliminating "pet" rent and "pet" fees it sidesteps the emotional support animal people.