A line of credit won’t commit you to a monthly payment unless you use the money, so you can avoid paying interest when it’s not in use.

Once you’ve built some confidence and systems, you can start exploring additional markets.I personally focus on 2 markets that are about 20 mile radius.Make sure the market(s) you choose align with your investing goals, whether that’s cash flow, appreciation, or both.

This includes credit, criminal, and rental history checks for all parties.

Credit (loans) become much more difficult to obtain and if available you pay a MUCH higher interest rate with a much higher down payment requirement2.

Additionally, for the AR llc, do I need to register the LLC in California as a foreign company?

Purchasing the LLC gives you ownership of the property, but it also opens you up to additional legal exposure since the entity has been active, and there is no way to really know for sure what else they used the LLC for.

Most non-FHA loans will require at least 15% down but you'll have to have amazing credit.

Other than paying for an appraisal or BPO (and maybe a credit report), you should not pay a lender anything until your loan funds.

Additionally, most servicers will provide the tax documents needed at end of year (1099-INT, 1098-INT) and can also issue notices of NSF, late payments and support delinquency /default.

But if I decide to pay an extra $2,000 per month, in addition to my (dropping month after month) minimum interest-only payment, when the loan is recast to principal and interest, the new payment will be based on the remaining balance ($396,000) spread over 25 years.