These options could provide flexibility with your upfront costs and monthly payments.Expand Your Search Radius or Property Type:If you’re set on a single-family home, you might find more affordable options by expanding your search to nearby areas in San Diego County or by considering properties that need a little TLC.Partnerships:Partnering with another investor or family member might be a way to pool resources for a purchase.

A knowledgeable attorney can advise here.Create a solid operating agreement: Since you own the condo with a friend, a clear operating agreement is essential to outline responsibilities, decision-making, and profit-sharing for the LLC.To save on costs:Look for real estate attorneys who specialize in investment properties and might offer package deals for the retitling, operating agreement, and filing the LLC.Shop around for title companies that can handle the transfer smoothly and provide competitive rates.Research DIY options for setting up the LLC if your situation is straightforward, though I’d still recommend a lawyer for the transfer process itself.Good luck with the process!

The original post leaves the door open for a challenge by the IRS, so the safe harbor of holding it for investment for two full years is the safer option.  

I have a good financing options, but still looking to build new relationships with lenders in the area.

(This option would would not carry any debt, all debt would be paid in cash)Or keep our current house, rent it out, and cash flow NET monthly about $1,500?

Just learning my options at this point. 

Offer aid and housing options if you're able -- don't try to profit. 

Seems like his option will be to buy it with a conventional loan with 5% down.

@Matthew Posteraro I'm a big fan of starting with the 5% options. 

(Auctions and foreclosures can also provide great leads.)With $20K, hard money loans are a practical option, as they emphasize a property’s ARV over your financial history.