20% down is doable for a lot of lenders, 15% down is available in some cases but will come with horrific terms. 

If it qualifies as a short-term rental, you might also avoid passive loss limits, making the strategy even stronger.If you’re considering a cost segregation study, DM me and I can point you to some solid firms in SoCal!

Look for undervalued properties, explore FHA loan options, and consider mid-term rentals to maximize income.

From what I’ve gathered, it’s crucial to connect with local agents and attorneys since they often learn about foreclosures before they even hit public records.It also helps to keep an eye out while driving—homes that appear neglected or have been vacant for a long time often signal a pending foreclosure.If you're considering this strategy, be ready to move quickly.

Long time no deals!

I have several short-term rentals down here & am an STR expert in the area.

We actually hired our own software engineers to modify the system for what we needed, and allowed the developer access to and property rights to what we developed in exchange for a long term license at low cost.  

The average rate on a 30-year mortgage slipped slightly to 6.76% from 6.85% last week, according to mortgage buyer Freddie Mac.The number of homes actively for sale grew 27.5% compared to last year, the 16th straight month of growth.Newly-listed homes increased 4.2% year-over-year.The median price of homes for sale in February fell 0.8% to $412,000.Realtor.com also reports a growing number of listings with price reductions, with 16.8% of sellers cutting prices in the month of February.How long before we hit equilibrium? 

It has had higher appreciation than nearby towns since the pandemic and you should be cash flow neutral or slightly positive day one as a long-term rental with a 20% downpayment.Note that zillow and other websites greatly understate your property taxes. 

Partner B will get $220,000 + the single wide, while Partner A's heirs will get the apartment building and the double wide.They intend to sell one property ( the double wide mobile home ) and use the proceeds to either pay down the loan or reinvest in another rental property (possibly in another market).To defer capital gains tax, they plan to use a 1031 exchange for reinvestment.Goals & Challenges:Tax Efficiency – Structure the transfers and payments to minimize tax liabilities for Partner A’s Spouse and the Children.Guaranteed Income for Partner A’s Spouse – Ensure a fixed monthly payment of $1,100/month while transferring ownership to the Children.Long-Term Investment for the Children – Build a solid rental portfolio to support future financial growth.Operating the LLC Under New Ownership – Ensure a smooth transition, including removing Partner A’s Spouse and Partner B from the LLC structure.Proposed Plan & Questions for Advice:Instead of outright gifting the 50% interest, the LLC will be restructured so that Partner A’s Spouse retains a Preferred Equity Stake that provides them $1,100/month in priority payments but gradually transfers ownership to the Children.Payments will only be made when rental income is sufficient (i.e., when rent increases to $850/unit).Partner A’s Spouse is willing to forgo payments in bad financial times but wants assurance that they won’t face any tax consequences on unpaid amounts.If Partner A’s Spouse passes away before full ownership transfer, the Children inherit the shares at a stepped-up basis (avoiding capital gains tax).Questions:How should the LLC Operating Agreement be structured to allow withholding payments when necessary without triggering tax or legal issues?