There are many ways you can recast this deal. first things first, close the deal with attractive seller financing. ask the seller to add settlement cost into the mortgage. consider some of these in your mortgage conditions ( put some or all of these terms in your offer) make sure you understand the value of these clauses - if not, give me a call glad to chat.1. put a subordination clause in the mortgage, this will allow you to get a new first and have the seller financed in second position.2. have a pay-off discount of 5-10% so if you get a new mortgage or sell the house you can discount the seller mortgage, this could save you thousands of dollars.3. have the mortgage secured by another property you own - this will make your property free and clear, now get a new mortgage, keep the proceeds or use it for renovations.4. have a stutter clause, this will allow you to miss one payment a year.5. have a first right of refusal in the mortgage in the event the seller (mortgagee) try to sell the mortgage at a discount, this gives you the option to benefit from the discount.6. the mortgage should be fully assumable without qualification with release of liability. this makes your resale attractive since you have financing built in.7. ask for a delay in making payments (6 months) this will free up some of your cash for renovations. good luck  with it -- Charles

Try to find some properties priced under value, and do some repairs to force appreciation and then cash out refinance that property to recoup most or all of your costs.

Would it make more sense to try to sell them to investors either one by one or all together?

So you go to a HML and show them the deal, they like it, they finance it and you get it done much quicker (for a price) but once it is done you can now go to a bank and get a normal loan to pay off the HML and hopefully get some or all of your money back from the rehab.

That is where the price remains the same, but at the closing table, the sellers pay for some or all of the buyer's closing costs.

Ask yourself: "do I really have a pre-existing, substantive relationship with all of my FB friends or all of those in that FB group I just posted to?"

This problem may have been avoided had you used a tax deferred or tax free account to implement some or all of your “side hustle” in real estate.

Small Balance Loan Advantages Small Balance Loans are designed specifically for smaller multifamily properties.Interest rates are set by Freddie Mac and are highly competitive.The debt is secured by the property, so personal guarantees are not required.You can typically borrow up to 80 percent of the property’s value.If you choose, you can make interest-only payments for part or all of the loan term.From CBRE:http://www.cbre.us/real-estate-services/real-estate-industries/multifamily/freddie-mac-small-balance-loan

@Jonathan SchwartzI'm not saying whether CA is better than another state or not - I don't know your situation or all the facts. 

you can always do both or all, taste all the fruit before deciding which is your favorite ;)