But, I don't want to foolishly jump into this game with the arrogant assumption that I'm smarter than I really am, and thereby get burned badly right from the start.  

Just dont burn down my house with yours...

If you get burned in one market, you won't have all your properties there...

I guess it's tempting to thing that such things are improbable, but my own house burned down 10 moths after I bought it, and were it not for my boyfriends' parents stepping in with an "emergency fund" things would have turned out differently for us.I bought an REO from an investor who didn't have enough of a cushion to get him through a couple of bad years, and I guess I don't want to be so maxed that I would fall into the same trap if things went awry.  

I'm looking at 30+ years of retirement and possible LTC needs so I don't think many CA retirees will be doing what you suggest.Now the heirs I'm sure will have a hole burning in the equity pocket unless they have experience in CA investing.

But you can get burned.

Don't burn yourself out.

You have to trust the on site manager but I have heard many horror stories of remote investors being burned severely.

That satisfies the bank and covers me if the house burns to the ground.2.

I hate to see you getting burned by this experience and never investing in real estate again.