I had a real estate broker license for about 30 years but I never did that full time.Always remember to do the math analysis on your prospects and try to look at them before you make an offer or at least have a clause in the sales contract that allows you the time (usually about 15 days) to make a detailed inspection of the subject property and possibly back out of the deal without a penalty that will excessively hurt you.There is so much to say to you but I am bound to forget something.  

We have 1099 in house maintenance, and manage portfolios in excess of 100 units for 5% of collected with no minimums.

So if a person invests wisely/conservatively in real estate (under 65% loan to value, stays away from excessively expensive properties that tend to default more, invest in the areas) perhaps the number drops to 20 or so.One suggestion: there is a fund called BroadMark Capital that invests in 100+ loans.

He cannot afford the water bill due to excess water usage and is barely able to cover the payment plan he has setup with the city.

I know many real estate agents who always tell me about people who frequently buy properties from them as investment properties, and it just adds fuel to the fire.

But all is welcome and we use what is needed as fuel to be relentless or as a learning curve.So would in this case a Sub2 be the way to go about it.

So I have two properties under an LLC that are free an clear and I would like to use them as a collateral and like that make sure of excess cash to purchase it   any Ideas on type of loan options?

Excess acreage, usually over 5 acres or what is common for homes in the area will be discounted or ignored as to value with Fannie/Freddie, VA, and FHA mortgages, USDA can take more land value, depends on the region, but my guess would be 20 acres.

I am no expert, but what I do not see in San Diego is how we get from the present extremely low inventory levels (especially on the coast and the lower priced $800k and below market) to an excess inventory level which I believe would have to be a precursor to any significant price drop.

They may require some maintenance, but not excessive amounts.