BTW, I have created several MMLLCs, some with people I initially never met face to face, and at the core are general terms and, legally, the Operating Agreement.

This was the best initial investment I could have made into the property - it immediately signaled to my tenant that I was serious about taking care of both the property itself, as well as improving their experience as a tenant, and we've been on great terms ever since.Let's say you talk with the owner and they don't know any information about the renter's situation. 

The initial $100k negative would consume many months/years of cash flow.  

I believe that successfully navigating this initial investment will pave the way for future opportunities, whether in the same market or elsewhere.Living in New York City, I faced a challenging market ;)I chose Montgomery, Alabama.Here's my process:I compiled a list of states with favorable landlord laws.Using Brightinvestor, I identified cities within those states where the median home price falls below the national average ($420k).I excluded cities with negative income growth and rising unemployment rates.I focused on cities with strong appreciation rates over the past five years (over 10%).I compared price-to-rent ratios.I did break two rules: Montgomery has a slight decline in population, and its largest employers are an Air Force base and government agencies.One significant factor that influenced my decision was the promising price-to-rent ratio, suggesting potential for positive cash flow (though I remain cautious about appreciation).Regarding my acquisition strategy:I plan to employ the BRRR method with cash.

Again, assuming this transaction is in CA.Here's some initial reading for you, which may help:Civil Code § 2945.4 CC - Foreclosure Consultant Violations (shouselaw.com)************************Alternative options may be to purchase the 1st TD and do the foreclosure yourselves, or gather the cash and buy it at the trustee sale. 

After thorough research and initial assessments, I estimate the rehabilitation costs to be approximately $250,000. 

Buying properties as singles in my area i have found much better deals than this although these are up and flowing and require no initial investment. 

There are initial and annual costs involved, and you have to sign up with a brokerage. 

One other thing is that I paid a lot in points to buy down my rate which made the mortgage initially expensive… It will also take a while to refinance (a couple years) so I don't want to wait fully for that option eitherIf my tax rate is 30%, is it right for me to think that the cost of paying interest is ~5% instead of 7%?

Investing in New Builds: Considerations and ProcessNew Build Investment Options:Build and Sell (Fix and Flip):Pros: Potential for high profits with modern appeal.Cons: Requires significant upfront investment and market risks.Build and Hold (Long-term Rental):Pros: Attracts quality tenants, potential for higher rental income.Cons: High initial costs, market fluctuations.Process Overview:Market Research: Identify high-demand areas.Land Acquisition: Purchase suitable land.Design and Planning: Work with architects and obtain permits.Construction: Oversee build quality and manage costs.Marketing (Fix and Flip): Highlight new features to attract buyers.Tenant Management (Rental): Implement thorough screening processes.Advice:Educate Yourself: Understand local regulations and market dynamics.Risk Management: Prepare for potential delays and cost overruns.If you have any other questions/just want to discuss feel free to reach out to me directly!