Deciding whether to buy properties under your personal name or an LLC is an important consideration, especially when you're planning to use hard money and then refinance.Buying Under Your Personal Name: Easier Financing: Most banks prefer to lend to individuals rather than LLCs, especially for first-time investors.

Taxes:Capital gains taxes are always a consideration.

Note: I've had plenty of tenants state their credit score is xx and it turns out to be considerably lower.

When new to investing we tend to focus almost exclusively on profit potential with almost no consideration of risk.  

The strategy you're referring to could work in principle, but there are a few important considerations.

I would suspect that rents will go up considerably in Los Angeles over the next five years.

@Tim MelinPro - didn't take into consideration personal income or debt.Con - stiff prepayment penalties that are typically a 5-yr step down and the rates have gone up considerably in the last two months making them a poor option at the moment if you believe rates will go down in the next year or two.

Thank you, Wale, for all the suggestions and considerations when choosing a down payment amount!

I am also basing this consideration on the poor GMaps reviews, by clients, from which it appears that there is a mess at this law firm.

Thank you for your consideration, Mr.