I will be using an FHA loan to achieve 3.5% DP.

However, if I can pyramid, reach a goal and start paying off properties by snow balling, I could achieve the level of financial freedom I desire.I am taking your wisdom to heart and will make that snow ball happen as quickly as possible.

Why was real estate the way you choose to go about achieving that (those) goal(s)?

Looking at a set of #4 four plexes built 1980 in Marion, IA - each unit is a 2 bed 1 bath 700-800 square feet.

When I hand over the control and protection to someone else that is only loosely financially connected to the unit, I increase my risk dramatically.

Since we are California residents, what would the process be to setup a LLC to achieve this?.

I believe critical mass has been achieved, finally, and Oakland will be where everyone wishes they were a month ago.It is critical to be working with an investor-friendly, hyper-local, Top Producing Realtor who knows the neighborhoods and the trends.I invite anyone interested in buy/hold or fix/flip in Oakland to sit down with me for a chat.

The FMR for my neighborhood is approximately $1000 which it turns out is uniform with the other houses around my unit.

Your NOI until this happens is $916 per month then minus your Debt service = ($413) in cash flow or your rent for your unit. 

As an aside, I think finding good SFRs in decent areas is the best way to go down here right now if you're looking to buy and hold. 8-10% cap is easier to achieve.