I have a very easy and quick answer to your question and it's a no-brainer.Don't buy rentals in California.

House hacking with an FHA loan is a great way to minimize living costs while building equity, or you could invest in an out-of-state rental for steady cash flow.

@Jordan BrownSince Orange County and Santa Barbara have high housing costs, using an FHA loan for a house hack could be a smart move, allowing you to put less money down while securing a property.

You can either put the portfolio into one LLC or create two LLCs, one for each property.Getting a good SEC attorney is more important than the cost. 

No title co will insure with a lis pendens, and no buyer in his right mind will buy.  

Underestimating rehab costs - get a contractor bid.5.

I tried shopping around but no one would take me since I had a sewer collapse claim last spring.

Key risks in the BRRR 2.0 strategy include construction delays, cost overruns, market fluctuations, and difficulty refinancing if the property doesn't appraise as expected.

In that case, having it accounted for as a separate fee might attract more initial interest in renting the property - with the total cost being revealed later.

.📜 Know the rules – No "deal-making" in the forums (that means no advertising, pitching services, or looking for partners).