Given the strong local market, holding onto the renovated home and aiming for appreciation could be wise, especially if you believe it will outpace your short-term costs.

Are you aiming for cash flow, appreciation, or a combination of both?

:)I definitely hear you on the risk - I aim to buy-and-hold the properties and place Section 8 tenants, so the deals tend to be as safe as possible, but I understand your and Mitch's points about deals possibly losing money.Where I'm getting lost is on how to structure being paid when I borrow from private lenders.

I'm doing this for the first time on my own after a divorce, so I'm aiming for efficiency, affordability, while also being able to find tenants I feel good about being such close neighbors with.thanks in advance! 

Assembly Bill 1771, also known as the California Housing Speculation Act, aims to change real estate tax policy to discourage investors from quickly reselling properties like single-family homes.Under the proposed bill, an additional 25% tax would be imposed on the gain from the sale of a qualified asset (including homes) within three years of the previous sale.The tax reduction is dependent on the number of years passed since the initial purchase of the qualified asset, ranging from a 20% reduction for sales occurring between 3.01 to 4 years to a 100% reduction for sales occurring more than seven years after the initial purchase.The revenues generated by this tax increase would be deposited into the Speculation Recapture Community Reinvestment Fund, which aims to support affordable housing, local governments, schools, and infrastructure projects.The bill is introduced by Assembly Member Ward, and the proposed tax changes would take effect from January 1, 2023.Assembly Member Ward argues that short-term investors in the market, including fix and flip investors, contribute to rising housing prices, limiting opportunities for Californians to purchase homes.While the bill may discourage short-term speculative transactions, it is worth noting that California's tax laws still provide certain advantages for investors, including unlimited tax write-offs and depreciation benefits.The bill is subject to legislative approval, and Assembly Member Ward will speak publicly about the bill at the San Diego County Administration Center on a specified date.Please note that this is a simplified summary of the bill and its potential impact on fix and flip investors.

I assume you're talking about buying the property at the foreclosure auction, if not then it would just be about getting ahold of the owner and seeing if they would sell it to you.If you are aiming to buy it at auction, this is a really good article to read: https://www.biggerpockets.com/blog/buying-house-auctionMost important thing is to make sure 1) you are buying the 1st mortgage and not a second and 2) make sure you know if there are any tax liens on it as those don't get wiped out in foreclosure.

- Measurements of all sheetrock, flooring, cabinetry, counter tops, etc that need to be replaced for estimates.We’re both ambitious but also realistic about the risks.

I recommend aiming for 35-40% down to avoid being burdened by debt service.

I aim to attract middle income, long term tenants.

And the surrounding neighborhood we are aiming at for this specific listing did not have anything popping out for the past 2 years.