If the issues can be resolved, I will need to get another quote but this should give an idea of the CA FAIR.  

It's a good idea to spend a couple of hundred dollars to meet with a real estate attorney or foreclosure attorney and go over what you can and what you can't do in the state you want to buy foreclosures in.For clarity, there are stages to foreclosure.

At least plan B does not sound a complete bad idea now.Thank you!

Option 4: 20% down on 2 to 3 properties Also open to hear other ideas, I'm self employed so getting a lender can be a bit more difficult.

Always good to get new ideas!

I suppose you could say I was complaining that the barrier to entry feels higher than it should be, but your reponse didn't necessarily touch on that.As for the cashflow points you made, sure I could just not care about cashflow in lieu of the equity and appreciation over the years, but the idea that an HVAC replacement negating any cashflow made is kinda my point about the conditions of the market.

I would start with them.I am not based in LA, so I don't know your exact laws, but I think I can still provide some initial direction for you to find answers, and maybe offer an idea to research.  

That way the lender has an idea what it is you are doing and cost.

Any ideas on how to handle this?     

So for the first property which will cost over $1 mil to construct, there will be stacked loans, essentially $280K will come from loan assistance program,( the name is not correct but the same idea).