I wish I took a larger security deposit for those, so that may be a good idea as well.

Your strategy of re-marketing a 3-bedroom plus office as a 4-bedroom home office is a smart way to boost rental demand and rental income without major renovations.One insight I’d add is the potential benefit of exploring cost segregation studies once you build a larger portfolio.

Does my plan make sense, or should I consider spending a year saving for a larger down payment and a better property?

I have a considerable gain from my CA flip, if it sells/ My choices are 1) Just pay the cap gains tax and get to freely do what I want with the liquid funds. 2) 1031 Out of state and file the FTB 3840 forever.I'm just getting started and made sacrifices to get this deal going.

Best choice we ever made.

I like connecting with lenders local to the areas because they typically have a larger network in the market and sometimes they're able to process the deal faster as well. 

.• One of the positive factors about selling me your house is that you can stay in it for as long as you need toand I can get you your money on the date of your choice.• I will pay cash when I buy your house so you can have the peace of mind of knowing it’s sold not only sold,but sold to someone who can afford to buy it.”• Believe me, there is nothing more frustrating than seeing a deal break down in escrow.

@Eric FormillerSometimes it can help to decide where not to buy first then you'll have fewer choices of where to buy. 

While margins may be equal or higher on cheaper deals, you need to do more of them to yield the same cash output versus one successful larger deal.  

While the interest rate might be higher, you eliminate the risk of needing to refinance or sell later, making it a safer option if your goal is to hold the property long-term without any financial uncertainty.If maximizing cash flow now is a priority and you're comfortable managing the future refinancing risk, owner financing with a balloon could be the better choice.