As your portfolio grows, it’s worth getting more intentional from a tax angle, especially understanding passive vs. non-passive income and how being involved in your rentals can help you save.

Great idea - house hacking is definitely a positive direction to take and I've personally previewed a few really great house hacking opportunities in Los Angeles over the last couple of weeks.I'm a realtor in Los Angeles, but also an active investor/developer and so I would simply say that there are lots of ways to find capital for investment properties that don't involve your own property.

A HELOC is revolving debt but it doesn’t automatically involve interest-on-interest.

A court that strictly follows the law would find for the plaintiff, whether they are landlord or tenant, when it involves serious lease violations.Suggestion: speak with the ex-tenant and agree to their demand for a full refund of security IF that would keep you out of court. 

Since you’re looking out of state, it’s worth keeping an eye on markets that are still affordable but growing, like Columbus, Ohio, even though it’s not a traditional tourist hotspot—properties here can cash flow right away in the $120K–180K range, hit the 1% rule, and benefit from the city’s rapid population and job growth with big companies like Intel, Amazon, Google, Honda, Microsoft, and LG expanding locally, so there’s solid long-term appreciation potential.

I have a full-time job and while I am passionate about real estate I am not interested in quitting just yet, and partnering up helps me choose the level of involvement and hand-holding.4.

Having someone help pressure-test deals and stay involved through the full process can make that first project a lot smoother

I have been involved in a number of different size projects in the area in the last two years and all seem to work well. 

And by compliance, what is involved in that typically.

And of course, you'll want to keep an eye on construction costs to make sure the numbers work for your project.Another thing to keep in mind is finding a property manager who's got experience with small multi-family properties.