@Aaron L.i would go with Strategy 2 to build an out of state protfolio and continue to rent till you get a fair deal in LA.You should get a prop mgr who can vet the OOS property for you as well.lot of investors do take the turnkey route with build in prop mgt. ( Do check the turnkey reviews websites. lot of them are marketeers and not an actual turnkey company)you can also buy off MLS or wholesalers as long as you have a prop mgt co selected in your cash flow market.Best of Luck

Despite everything going wrong that could have gone wrong, we're actually going to make money on the deal.

Once the asset is paid off, the cash flow will actually support hiring a qualified professional who will make sure your LLC is managed the way it is supposed to be. 

Or could I get pre-approved based on projected rental income and then get a signed lease before the actual loan application? 

On the flip side if it was significantly distressed it's possible that your hypothetical $30k actually added more value than that to the property. looking at it in terms of percentage isn't really the best approach to look at how much value you've added to a property. 

On a side note, I think once you look at the actual results of our local tax certificate sales, you’ll look for a different investment vehicle. 90% or so of the certificates went for a rate of 0.25%.

That's my $.02.Also, to address your actual question, I have 23 units, and I have 0 employees.

It actually is not cash flow positive if not generated solely by the merit of the property itself.If buying cash flow is your approach to wise investing then in theory every property can be cash flow positive.

They are actually way below their numbers and they maintain their HUD approval status allowing FHA mortgages. 

It could actually turn to negative equity unless you buy it right.