To give you something as a reference based on your budget (30-40% down with $1.8M), the general cap rates you will see in the Bay Area are roughly 3-5% https://www.loopnet.com/Listing/1047-Rich-Ave-Mountain-View-...https://www.loopnet.com/Listing/1180-Saranap-Ave-Walnut-Cree...You will find higher cap rates and more 20+ units buildings in SF, Oakland, and Richmond, but keep in mind of their stringent tenant laws. 

Greg If you are referring to hare money that is not what I used. 80% was financed through the bank and 10% debt held by the seller. 

Also I am referring to a single ADU on a SF zoned lot.  

And now a Zappa reference too.

We also work with investors in the different markets we operate in to perform tenant placement where we work with ALE Solutions, other relocation companies, medical agencies, etc. to offer properties as a part of our inventory.

So while it's not as ideal as a multifamily property, it does present a solution for those that are in the personal situation where they can. 

There are quite a few solutions out there so that even the most tech challenged person can pay electronically.

.- The TL states that those are technically the team's leads and I will owe the 20% if they convert within the year since I was given training (which I was not), lender referal (which was forced on me by the TL even though I work with my own lenders for my clients).Is the above statement true/legal/valid?

We recommend that you check reviews of the lender; Ask for references; If the lender is advertising something that is outside the normal metrics for the industry it is likely a bait and switch. 

HI, Is opening a LOC on my primary a good option to fund flips or is there a better solution to get the funding?