Stepping into a purchase with current tenants can be a lot easier, if the numbers are good.You might look at a HELOC on your personal home, but not until you have really worked through the risks. it would be awful to lose your own home on your first investment purchase.It has only been five months since your home purchase- how is your emergency fund?

Finding a duplex in OC for your price range is much easier than you might think.

The other reason is that it makes it a little easier to self manage......as far as the tenant is concerned, I'm the manager and a company owns the property. 

Are there any statutes or laws that make owning it for 6 years make the process easier?

Pete markets.From what I can tell, it appears that neighborhoods can change relatively quickly from nice to not-so-nice.

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Be prepared to get notarized statements from the contractors that were there, or have your attorney subpoena them to appear in court to testify about the tenant's threatening behavior. 

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Investors into and LLC seems easier to me than a bunch of small private loans documented.