I see that the rules DO NOT apply to a property of 3 units or fewer, where the owner lives in of the units.

In my market it takes significantly fewer units than that.

In fact most private lenders buying these loans in the secondary market are offering to restructure the loan to make it affordable.2)  Homes with borrowers in default are almost always poorly maintained, adding to a sense of general decline in the neighborhood.  3)  When these houses do go back to the lenders, they are fixed up and resold, improving the neighborhood and restoring the tax basis (they are almost always behind on the taxes).4)  If lenders are going to have their contracts voided then the result will be that fewer people will make loans and they will be at a higher cost.  

Hey I'm just trying to be honest and play devil's advocate here about the dangers of all the tenant's rights stuff in San Francisco, but if you want to go sell the concept of San Francisco investment property deals/properties/mortgages that typically break the 1% rule, have low cap rates, and will often be cash-flow negative out the gate, some non-trivial percent of these mortgages which I will be writing, go for it, thanks, and keep writing posts like this.

Everyone says its so easy to invest out of state, but without the right team in place it can be financially dangerous.  

Scale is key w fewer folks financially able and skilled to take down 300 unit opportunities enabling more upside.

You have the principle correct but as Jeff Beard notes, using 100% borrowed money on the front end is a dangerous strategy; you are simply refinancing the financing, which is different than pulling your own cash back out of a house.

Hi @Sophie ParthesiusOgden is the fourth most dangerous city in the 45th most dangerous state.  

Warm Regards,Erik Welcome Erik I am  no pro by any means just know enough to be dangerous I guess.

., you will find fewer and fewer customers desiring your service.