The land is on two tax lots so my plan is to sell the extra lot immediately after closing for a projected $275K.The property on the other lot will be a fix and flip with projected costs of $240K and an ARV of $750K.I plan to use a PML of 2 points and 12% APY for 70% of the total cost.

But I would charge the extra 3% to cover my costs.

After 4-5-6 years then maybe roll them up into a small mulitfamily.Another option if you have the credit and some capital is to buy a 4 unit as owner/occupied and live in one and rent the other 3. 

Politely and clearly, make it extra clear that all information will be verified including income prior to the signing of any lease.  

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

That would be a helpful addition to your plan as you would further reduce your cost of living.Also don’t forget from that $600 you are planning on getting in cash flow you have taxes, insurance, maintenance, capex, and vacancy to consider.With two homes, you may want to keep that extra $20k as an emergency fund rather than spending it on a third property and then be left with no emergency funds.

@Luis Cerwin as others have stated, Nov - Jan is the worst time of year to have a vacancy.Majority of tenants live paycheck-to-paycheck, so all their income goes to Holiday spending starting with Halloween, then Thanksgiving, then xmas, then NYE.January is also historically the worst month for rent payments due to Holiday Hangover Spending.

Just an extra couple of clicks to do.

If one of the LLC members lived in another state and that person acted as managing member then you can avoid the FTB fee, but looks like you both reside in CA. 

But, I'm fairly risk averse, and do live in a heavily tenant leaning area as far as regulations and court judgements.