We're currently saving up enough for a 20% down for a conventional loan to bypass having to pay for PMI and MIP, as these 2 additional monthly expenses are a "make it or break it", in finding a cash flowing property in California.I would love to know what your story was like when you first started your real estate investing journey!

You can get a second mortgage to go with the assumable loan.

This will be the first loan for me. 

Please keep in mind that we do not want recommendations for strategies involving financing, as we want to get some core holdings that produce immediate cash flow and not have that NOI reduced by loans at current rates in light of the current cap rates.Also, just FYI, we are in California and no way to get around that residency in time to reduce state taxes.

@Arman TannuThey look at it from the loan is not assumable and possible due on sale.

Also a huge benefit is you can get a non recourse loan and not have to pay UBIT tax on the profits made with the leverage.

Conventional loan and we just ReFi into a 1st position HELOC.

If you have a loan, you may wish to look into due-on-transfer clauses.

One of my favorite programs can finance property values down to $75,000 - however, I've had exceptions granted for clients with lower values as long as the loan amount stays above $50,000.

Monthly Rent + Monthly Debt Payments <= GROSS Monthly Income * 45%This accounts for some people who have outsized obligations such as car payments, child support, credit cards, student loans etc.