Yes fix and flip but on the higher end.

Sorry bit of a novice on some of these things and highly appreciate your guidance Sir!

It seems like selling and renting is the biggest wealth builder in the end Rent in a lower cost area with a lower monthly payment and use the difference gained  to invest in the stock market ( which would yield around 8 percent) Keep the primary and hold it long term ( average appreciation in california from what I could see is about 5 to 6 percent if you look back in time Keep it as long term rental ,it would rent for $3800 current mortgage is 6150 $ - doesnt seem smart to me Let me know if you need any more details in order for you to give me a better answer or insights 

Like @Michael Baum and @John Underwood said, this is a highly competitive area and I don't typically recommend going into a neighborhood that isnt a resort.

I explained that landlords usually have 30 days from the time the lease ends to return any part of the deposit owed, but I’m not sure how that will work since he’s leaving early.

Ok I will check those websites out, Thank you.There's a variety of ways to get a deal in front of you (I'm mostly a flipper), but basically if it looks promising, I run custom comps queries and check the current & past $/sf of renovated/distressed product in that city or zipcode.Here's a chart on 90066 I generated from my tool under Market Stats > Sales Data > Specific Zip Code:- My above chart (more available) shows the Avg Renovated $/sf (High) over time in this Zip Code, something completely different than charts/providers based on Averages/Medians only, like every other platform (RedFin Below, https://www.redfin.com/news/data-center/):- Can't select smaller locations such as City or Zipcode for their $/sf data, so it's useless helping me underwrite/verify a deal.- Can set Zip Code for Median Sale Price data, but again it's the median/avg so it's useless helping me underwrite/verify a deal.Then if that looks decent, I'll run Sales Comps, and get a quick summary of some key metrics based on those comps.

There is no reason to buy your own first for experience purposes - and the fact you already live there makes it 'owner occupied' if you end up going with traditional bank financing - which will give you better rates, and access to more programs. 

The more you leave open on the front end, the more likely your contractor will increase costs throughout.  

There have been a few posts like this over the past couple of years ending with "Please let us know how it goes after a while" but no follow up.

Partner Driven was attracted to the S Homan Ave property in Chicago, IL, due to its potential for a high return on investment with minimal renovation costs.