My local market and rental laws make it difficult to invest here.

It also is generally more difficult to obtain financing inside an LLC, and if you transfer property to the LLC after obtaining financing you could risk triggering due on sales clauses.California is a sort of beastly state when it comes to taxes and filings.

Also, I was naive about how difficult it can be to run a successful flip if trusting contractors who make promises but fail to deliver How did you find this deal and how did you negotiate it?

Hopefully, you can find someone to split the down payment with, or to fund the down payment completely.An alternative solution is that you could potentially find a hard money lender to fund the deal, but that will likely be difficult with no experience, even if its a homerun deal.Robert Leonard

Personally, I would not pull money out of retirement accounts- depending on the structure and type, you could be paying a penalty and income taxes, most of the time it's difficult to justify that and make it up on a deal. 

There are certain breeds that make it very difficult to get Homeowners or Dwelling/Fire policies.  

I have gone to more county foreclosure auctions than I can count, without success (people are way overpaying, IMO) and to date I've only done MLS and it's difficult to find good deals there.  

I do screen heavily, but fear that with less expensive properties it will be difficult to find "quality" applicants that can pass screening unless I greatly lower standards.  

I find it hard to fathom the price difference unless the logistics for the smaller unit is different and more difficult.

Mine only costed about $300 all-in and is there if I need it.Getting a LOC on a rental is very difficult.