Hi All, my wife and I are based in Ojai, CA and are looking to invest nearby, primarily near Ojai or the Ventura County portion of Malibu, but possibly Santa Barbara County for the right property.

However, a huge portion of the extra monthly payments would be offset by new rental income from my current primary residence.

.: @Robin Simon I’m looking to put at least 5% down in a loan and use a larger portion of my capital to buy down the interest rate to take off a couple of points.

Rent in this specific area is anywhere from $3500-$4000/mnIf we fix and flip we would walk away with a good amount of equity that I would plan on reinvesting, my sister would keep her portion.

Padsplit people try to sell you that it's only a small portion of your income (1 out of the 6-8 members) vs if you do long term, you are losing 1 of 1 income. 4.

Where I see states stepping in on sub2 is the wrap portion, as the person/llc is originating the loan for business purposes which states have some crafty language in there about having min. number of loans you can seller finance but that is not the case if "you are in the business" is language that the states could crack down on investors originating loans.

Maybe offer to pay a portion of the balance contingent on completing the work or signing a waiver to avoid the lien.

So on the rental agreement, I had wrote its a two bedroo0m house ,then on a separate agreement, I wrote one bedroom for the remaining portion  of the rent. 

NOTE: A lower OER indicates a more profitable property as a larger portion of the income is retained after covering operating costs.Hope that helps!

Will add though, that a good PMC will immediately alert an owner about what their property really is and the expected challenges.Unfortunately, a decent portion of the time we do this, owners either don't want to believe the Evaluation Video we send them or decide to sell.