Total gross rents would be $5700/month no additional work would need to be done and I could get traditional financing.

But, you want to steer clear of gross negligence, as your insurance company may decline covering you if you were grossly negligent.  

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

The is gross mishandling of funds on the part of "guru" taking your money.  

@Tiia Hyrske, the common benchmark is GROSS income 3x rent.

This is why I don’t care much for stand alone “gross” figures.  

As soon as you discount gross rent, nothing cash flows. 

The rate difference between FHA and Conventional is actually over 1% right now for Multi family propertiesCurrently the rate offered is 6.75% and 193/m in PMI (private mortgage insurance)That makes the payment with taxes and insurance roughly:$3453/monthTaxes were $3820, and insurance is $1800/yrCurrently this building can rent each 2 bed unit for up to $1800/m with tenants paying all utilities.All in cost to close is: $71,414.64If you rent both units for $1800/m you can expect gross cash flow of $147/mThis is the reality of buying a turn key duplex in the area using todays rates and prices.I want to stress, that this is actually considered a great property and deal in todays market for the areaYes, prices are high, and so area rates...My goal is to show what is actually going on.

Self employed in the film industry, grossed about 140k last year.

You want to have an income qualification such 2 - 4 times the gross rent to qualify for the unit.