In addition, you would need enough working capital to pay for insurance (which will be going up a LOT in Los Angeles) and to pay for property taxes.Don't buy this unless you have substantial resources and a cash cushion to keep yourself safe.

My main goals with these initial projects are:1.Gaining valuable insights into the local market.2.Getting hands-on experience with out-of-state investing, particularly when it comes to remodels and managing from afar.3.Testing the entire BRRRR process to see if it’s the right strategy for me long-term.If all goes well, I’d love to scale up and explore multi-family projects.

These are typically interest only and require a payment of 1-4 points up front depending on your area and the PML.

So let me understand this:1.

He casually told me he sends out 10,000 pieces of mail every month. . .ten thousand! 

It, will go up next year.

We did give 50k deposit up front which he says he will use towards finishing up.

Thank you for your insights and help with walking me through this new venture for me.   

Pick one, but pull the trigger.

https://www.biggerpockets.com/blog/what-documents-do-you-nee...BRRRR Loans: What Are the Options, and How Do DSCR Loans Stack Up?