If I need additional funds, I can give another lender a second mortgage after explaining to them that the first mortgage holds a stronger position.BUT... if you do some paperwork with the state and set up an entity.

If you are in that 5-10 unit space where lots of residential lenders will touch it with their promiscuous easy money "DSCR loans," there's a little bit of it, but once you are in the 20 unit or 30 unit world, there's none of that stupidity, and cashflows are much stronger.

Pricing over there seems to be more speculative on what it could be worth 15-20 years from now rather than tied to the fundamentals of cashflow.Also if you start in Inglewood, 2 hours in LA traffic doesn't get you very far haha

But the argument would he stronger if there were a 3rd member of that s-corp. .

Sure, your corporate veil protections are tied to how strictly you follow detailed practices, but the IRS could care less I imagine, as long as the return is correct.I mean, so what if you file as S-Corp?

Have you thought about utilizing OPM (Other Peoples Money), so you don't have all of your cash tied up into one deal?

When your systems are virtual, you can have the best people and not be tied to any one location in order to get things done. 

Whether it's due to personal ties or their upbringing, emotions can get in the way of rational thought and analysis.

Most people that will chime in to pick one area over another either are personally, emotionally, or finiancially tied to one of the two markets. 

That could be expensive , if you are tying in to natural gas at the street , 5 grand and up . more if they have to cross the road .