@Jacob Hrip For a first-time investor, financing options like a HELOC or private funding depend on your strategy and risk tolerance.

. - some strategies I've seen California investors use to lessen negative cash flow: house hacking, mid-term rentals (people temporarily displaced from home renovation or insurance reasons like fire), rent by the room, Short Term Rentals. - The ultimate house hack, live in the small ADU unit and rent out the two levels of the main house on AirBnb in San Francisco (I would have thought STRs are oversaturated in S.F. but it worked for them and they stay fully booked).

To really connect with investors here, you need to contribute consistently to the forums and have some of your deals posted on your profile.

Watch out for ordnances and HOAs with this strategy. 

The section references age in many places, consistently mentioning the end of the year.

My strategy is long term buy and hold.

I see a disservice being provided in the given example by the real estate agent by not bringing creative strategies on both the sellers and buyers position on this particular deal.

If you're tax bill is $6-8k (minus the 1031 fees), surely you can make that up by taking multiple swings over a longer period of time.OR pursue some sort of owner occupied strategy with that cash if you can swing a live in flip or house hack.

The classic BRRRR strategy could work great here.

Many different strategies to choose from.What are you doing in Sacramento?