I'll call these "conventional" and "portfolio" loans.Conventional - I'll define these as loans that come from Fannie Mae and Freddie Mac (if you recognize those names).

The key is to inspect enough properties so you really know the market and therefore can recognize a good deal.  

@Darin White - a lot of different ways to handle, but here is what I do.Call the homeowner back and take a genuine interest in their situation. 

How to evaluate if this is genuine and not a scam?

You will never build genuine generational wealth on cashflow.

My recommendation is that you maintain focus on your ability to recognize (and eventually construct) actual money-making deals.

I know it's somewhat counter-intuitive, but wouldn't it be better to recognize the opportunity before anyone else does, in which case there wouldn't be any comps?

I am not really thinking likewise with my appreciation numbers as I recognize that in the short term the value of my properties may decline (my LTV would have me not upside down even in the event of conditions in San Diego as bad as the GR). 

I am planning on living in the first multifamily I buy.I also recognize you from the southcoast real estate investors group!

Is it important to document and prepare for your first deal by planning things like:- strategy- partners- finances- finding your vendors (contractors, agents, etc)- goals- etc etcIs there some template to go through to recognize everything you have to think about before your first investment?