(120k total)2nd house we are making a profit of 120k but this  "profit" would literally pay us back for our initial investments into our LLC together we used on the first house ...anyone have any idea how the gov.

.), and continue to educate myself on NOI, Cap rate, cash-on -cash return etc.BP community, I am open-minded, willing to take initiative, always willing to be taught something new, but also ready to share any experience or knowledge I have that can help someone else. 

The main reason is that it is not initially set up for a Real Estate business like other “real estate-specific” accounting software.

Rehabs is how i initially scaled.  

My initial thought is that the developers may have gotten a much better deal than they would have otherwise given the clear limitations on the land's use.

I am eager to start but can't get around the glaring issue of not having initial capital so I was wondering if there are any methods you guys would use to raise capital if you were in my shoes or is it just time to put my head down and put in long hours? 

There are many reasons that adding a single ADU in southern CA is a less than ideal RE investment (i will post a list at the end) but the negative initial equity is a primary reason as the initial negative equity position consumes the initial cash flow and can take many years to recover.As for converting your home to a rental….

And do they accept counter-bids after initial bid is placed?

It actually went to auction initially on the 8th but no bidders except the starting bid which I believe was the bank.

Getting his/her initial reaction could open the door to an agreement that works for both of you.