It’s possible to make some fantastic returns, just have your processes dialed in.

That is fantastic!

The beaches and the weather are fantastic. 

This is a fantastic leverage opportunity to get a price reduction or owner carry, as the alternative is admitting to the IRS that they lied.

For someone that's not as conservative, or a different view on the next recession, they might have a different opinion than me on all of this2) Sponsor quality check: (takes about 45 minutes per deal)I believe that a great sponsor can take an average looking deal and make it great, and that in mediocre sponsor can take a fantastic looking deal and make it bad (especially if there is a severe recession).

I used a calculator I created, but the BiggerPockets calculator works fantastic.

The rate is slightly higher but right now is still a fantastic time to do it.

Moving from west to east: Culver City is fantastic and expensive; West Adams is gentrifying and hit-or-miss; I love Mid City and Arlington Heights for their growth prospects; Pico Union and Westlake are very hit-or-miss, but are also expected to see a lot of appreciation over the next five years.The FHA loan might be a problem.

These are fantastic changes you've made, and should save you from wasting so much time on prospective renters who aren't really serious.

(Even though I did live in it for 4 years) selling with no cap gains at the end was fantastic though :)