I have private money family friend who wants to fund multiple investments and since I come from the construction industry they are confident in my ability to rehab properties.

Then after that is achieved, we will begin saving for a down payment on our first house that we plan to buy in the next 2-4 years.

How much time are you saving by doing things more digitally and with more automation?

Some opt for private lending to avoid this tax and still have investments secured by RE.   

In high property tax, high insurance states like Texas, you may see $20,000 in cash to close while you are saving $250 a month to refi.

California is NOT one of those states that exempts this type of lending.. there might be a small carve out for a few loans a year privately done but if you hold yourself out as a lender your need a license.

@Witty WordenIt can be a scary prospect to take a risk with a large amount of your savings.

We still own this property, but we have: 1) leased to market rent, 2) successfully implemented RUBS to save roughly $3,000/year, 3) Reduced vacancy/bad debt from pre-acquisition T-12 of 15% to less than 4%.

I you know how to swing a hammer or turn a wrench, you can save a ton of money on the maintenance side of things. 

I think you would save a little while rehabbing, but at what long term cost.