That's driven prices through the roof.One thing I do is generate maps from Census data to identify prime areas for investment and house hacking.

@Mathew Stephenson Have you identified a lender that will allow you to come in with only 5% down?

You did read the sales agreement and he stated he'll void the deal if he can't identify a replacement?

Take a look at Schedule E to get a better idea of what is most commonly identified as a legitimate rental expense.   

Have you already identified a property yet?

At a minimum, this should go to the CA DRE, if this is not isolated misconduct they will identify it.As for the deal - if it pencils, close it, see if someone else from the brokerage can step in and bring the transaction to a close.

So turns out, the owner actually thinks he dealing with a broker because that's what he identified his self as.

There's no better way to learn the trade, optimize your profits, and learn the value of a good PM than self-managing.As for identifying with the residents . . .

First step is to identify your market and client.

Comparable 3-bedroom, 2-bath homes have recently sold for between $85,000-$112,000, so I feel good about the numbers and potential cash flow IF we can hit our rehab budget.Here are the rehab projects we have identified:*Update heating/cooling system so home qualifies for traditional financing (gas heater pictured below is only heat source in home)*New siding*Finish attic space into 3rd bedroom to increase square footage and rent potential*Add small 3/4 bath upstairs (in the purple*Finish the kitchen*Finish installing matching LVP throughout houseQuestions:  Why hasn't another cash buyer snapped this up yet?