We are finding from our projections that the UDFI tax is almost a non issue as you also get to take depreciation on the financed portion and they come out to a wash more or less.

I'd like to invest in San Diego, but it will take a lot more capital than say back in the Chicagoland area (where I'm from).From a flipping standpoint, it is recommended to be relatively close to your properties, as you may want to check progress occasionally and don't want to spend most of your time traveling to your projects.

I Live in North County but done some projects in Downtown and also vincinity. feel free to send me PM to network

I've walked a previous project of his and has high quality finish.

How big is your project @Peter Grote? 

I'm currently working on a rehab project in North Minneapolis and it seems like everyday I find more junk and trash in my 30 yard roll off container.

I am a merchant marine, which gives me quite a bit of time off to work on REI projects.  

I have about 35k I can put towards this project as a down payment and to fix up the house.

However, if you're needing that $5,000 or more for future projects, I may be willing to lend. 

Assuming it works the same way in Illinois as it does here in California this would be a perfect project for a hard money construction loan.