This is when you buy a primary residence (1 to 4 units, the more the better) which you can usually get for a very low down payment and get the best interest rates on and then rent out other units and/or bedrooms within your unit to pay for the mortgage and other expenses.

But it can be done.I only recommend investing if you can find a quality property manager, one with at least ten years experience managing hundreds of rentals and really good reputation.

@Josh LemonsThey have a regulation A offering which is open to accredited and non accredited investorsThe great thing is they have to submit their offering circular and have it qualified by SEC as well as submit financial information etc.All this means is the information is readily available and if you do not understand it then I recommend engaging an attorney who can interpret it.

Did you know that you can acquire your a primary residence from up to 1-4 units for as low as 5% with conventional.

This is where you can learn and network with other people who have the same goals as you do - and many are willing to share their experiences with others. 

Does anyone have a recommendation for a lender that values ADU's in CA "accurately"?  
We completed our ADU earlier this year at our primary residence and it has been a great cash flowing investment.  We used a HELOC...

This can be a city or neighborhood.We manage a lot of Class C properties in the City of Detroit, so previous evictions are common.We typically do NOT allow within the last 3 years and we want to see stable employment, income and no other major credit issues since.For Class B rental we're looking for no evictions in last 5 years.Class A, would be at least 7 years.Of course, there are exceptions to all of the above for extenuating circumstances the applicant is willing to provide acceptable documentation for.

This log will be invaluable in case of an audit.3.Grouping PropertiesWhile I’m not an expert in international tax law, my understanding is that you can group all your properties together for material participation purposes.

I will say this short term sacrifice can lead to major long term gains.  

hi @Alvin TaverasMortgage Broker here, i've been referring clients out to Credit Unions for their HELOCs. we have a handful of lenders that can do them, but i'm finding the juice is not worth the squeeze in the broker/ wholesale world.