You've found a way to do that at a lower cost than you would otherwise, while building equity, and hopefully some appreciation.Here's the flip side: as a pure investment property, this is not a good deal.

I've got a LLC for a different personal business, however as you stated it would be best to setup a separate LLC for purely real estate.

And is $118k pure profit ?

As a pure investment property, this is a pass.

From a pure financial standpoint, you are definitely better off not building a single family dream home right now, but there is more to life than just money.

Hi Min,You have to first realize what type of beast the CA market is and know that its a pure appreciation play unless you have 50% down or more to play with.  

Just be prepared for loads and loads of paperworkSome things I remember that weren't bank specific were a projected pro-forma for the business, your resume and anyone else applying's resumes, bank statements, plenty of statements for your funding source for the down-payment, mortgage balances on property you own etc.I have one tip that worked in my favor purely by accident -- but a quick question and I can guide you and provide you the infromation - do you own your own residence or have any investment property? 

It might go through if I tried by pure dumb luck if the underwriting staff is on top of it, but that's not due to me knowing WTF I'm doing.

Or is it just purely ARV?

@Leah Gaspard, as a pure investment property this is a hard pass.