Here is a part of the letter, I sent to the seller:The home inspection was completed on September 29th (please see attached) and the following issues were pointed out: 1.The wooden floor frame in the middle unit is deteriorating due to either prior water leak in the bathroom or due to moisture infiltration through the walls and foundation.2.There is evidence of significant settlement under the middle unit bathroom and north closet.3.The settlement of the floor and walls has also resulted in settlement of the roof frame above this area, ceiling shows cracks.4.There is an obvious depression on the roof – water is ponding on the roof above the middle unit, which adds excessive weight on the roof and potential for leaks.5.Asbestos containing material has been found.6.The current bedroom heat installations in the north and south units pose a safety hazard from carbon monoxide, fire and oxygen depletion.7.An electrician performing upgrades did not use ‘arc fault breakers’ in the north and south unit breaker panels, which is required by the national electrical code.8.Upgrades to the electrical system, promised by a real estate agent, have not been completed yet.

I had a real estate broker license for about 30 years but I never did that full time.Always remember to do the math analysis on your prospects and try to look at them before you make an offer or at least have a clause in the sales contract that allows you the time (usually about 15 days) to make a detailed inspection of the subject property and possibly back out of the deal without a penalty that will excessively hurt you.There is so much to say to you but I am bound to forget something.  

We have 1099 in house maintenance, and manage portfolios in excess of 100 units for 5% of collected with no minimums.

So if a person invests wisely/conservatively in real estate (under 65% loan to value, stays away from excessively expensive properties that tend to default more, invest in the areas) perhaps the number drops to 20 or so.One suggestion: there is a fund called BroadMark Capital that invests in 100+ loans.

He cannot afford the water bill due to excess water usage and is barely able to cover the payment plan he has setup with the city.

So I have two properties under an LLC that are free an clear and I would like to use them as a collateral and like that make sure of excess cash to purchase it   any Ideas on type of loan options?

Excess acreage, usually over 5 acres or what is common for homes in the area will be discounted or ignored as to value with Fannie/Freddie, VA, and FHA mortgages, USDA can take more land value, depends on the region, but my guess would be 20 acres.

I am no expert, but what I do not see in San Diego is how we get from the present extremely low inventory levels (especially on the coast and the lower priced $800k and below market) to an excess inventory level which I believe would have to be a precursor to any significant price drop.

They may require some maintenance, but not excessive amounts.

Once I build up enough cash reserves from my first investment property and my current excess from my wages I will most likely go the LLC route and begin controlling my assets instead of owning with my next investment.