He just sees the suit and has his own (wrong) conclusions already.

Again, authorities will infer whenever possible to get the conclusion they are seeking.  

I think you can only come to some conclusion because of your experience.So on your property you use YOUR purchase property against YOUR NOI. 

In conclusion, what I am seeing from the comments is that it is not worth the risk according to both of you.

I want a great deal on an owner occupant as well, but I have to convince my wife to live wherever we buy.We've come to the conclusion that we are going to buy something (SFH or 2-4 unit) that will cash flow when we move so that we can hold onto it and rent it out and still have it remain an asset to us.

Furthermore, the longer repairs take, the more expensive your holding costs.Therefore, my conclusion is that I would rather be good at estimating repair costs than estimating comps and ARV. 

Conclusion: Hmm... if this is right this doesn't look to bad at all.

May I respectfully suggest a bit more attention to accuracy if we are going to attemp sweeping conclusions to those willing to share such information.Secondly and more importantly why would anyone such a return unless they did not understand or bother to carefully evaluate.

I finally came to the conclusion that unless you are very intelligent or very lucky, in light of the existing laws in place, getting started in real estate isn't going to be easy.

Our combined income is mediocre to say the least (85k/year, soon to be 95 - 100k) and have one car payment (300/m) and some cc debt (10k).We felt that we had a a unique situation on our hands because of the equity we have on our home, so we decided to do some researching in Real Estate investing and came to the conclusion of doing a HELOC and investing in SFH in Lancaster or Palmdale, CA.Chase, our lender only approved us for 40k with the condition to pay off our debt and car loan which only leaves us with around 6k.We are thinking about Lancaster and Palmdale because there are some properties that will fits our budget and fall within the 1 - 2% rule.Any advice?