They equate the period leading up to the time its ready to rent as the risky part of the real estate process and pay a premium to bypass that part but this leaves them with unreasonable expectations because the real estate they purchase is inherently risky.

Since my aunt is the listed owner, Proposition 19 does not apply in this case.We consulted a lawyer who mentioned that transferring the property to an LLC could allow me to be added to the title without triggering a property tax reassessment.

@James Zobrisky Relying on cash flow to fund future acquisitions is a challenging proposition.

@Ryan Daulton No investments are guaranteed, some investments just happen to be less risky than others.

Is ARM too risky or my plan should work roughly as expected?

There are other, more ambitious, risky, and difficult, ways you could achieve the same end goal.

So thats the riskI was genuinely curious.

Definitely something to clarify upfront...If you’re replacing with another restaurant, it should be an easier transition since the setup is already in place.Your biggest risk is vacancy $450K/year is solid, but if you ever need a new tenant,  ensuring the lease rate is sustainable is key! 

I work with a lot of househackers and they're typically on the 12 month cycle, rinse and repeat.While the proposition of acquiring an investment property outside of your market in a "landlord friendly" state may sound appealing, i would recommend you stay local for now and househack another couple of properties over the next few years until you've got some more time / experience under your belt.you would need a management company to cover your property that is outside of your market which would not only take 8-10% of your gross it would also leave you a bit vulnerable to a property management company that you A.)know nothing about and B.)you won't have the experience or cashflow or proximity to deal with any headaches that may arise.i would recommend staying local and househacking your way along for now and then maybe hire a local property management company initially to work with your current/local properties to get a taste of what to expect if and when you begin investing outside of your market.

In my opinion a fully passive RE investment is the most risky because you give total control to others.