- 4 units or less can secure conventional residential financing (if you want to live in one unit you can even get an FHA loan). (3).

Any other assets that can be secured to a loan?

Hey BP, is it too much to request first and last month with a security deposit?

As I understand it, we are not allowed to market these properties to strangers publicly (Craigslist, BP Marketplace, etc.) 

I do like your buy & hold strategy, but unless you really enjoy driving to tenants to collect rent every week, you should consider requiring your tenants to sign up for automatic withdrawal from a checking or savings account.Collecting rents in cash creates the opportunity for payment disputes, not to mention being a security risk and a huge inconvenience for you.If you're goal is to build a serious portfolio of properties, you'll need to resolve the rent payment issue sooner or later.

Since you live in Milpitas, with regards to your Prop 13 tax basis, if you are 55 years of age or older, check with the Santa Clara County Tax Assessor.https://www.sccassessor.org/index.php/forms-and-publications/forms/60-ah-transfer-your-assessed-value-prop-60-90When I sold my long-time San Jose home three years ago, I considered my tax basis transfer options if I remained in California, but decided to retire to a state with a lower cost of living and no state income tax.

One technique for finding deals that intrigues me is looking up NODs (Notices of Default) in the public records and then reaching out to the property owners (probably via postal mail) to see if they are interested in selling.It seems like there's a decent chance to find a highly motivated seller and perhaps a very good deal using this method.I am wondering if anyone in the forums has used (or attempted) this technique, and if so, what sort of results you've seen.

And, your comments about Hostfully sound about par for the course- startup entitlement mentality / tone deafness with no solid business model, no path to profitability, and just hoping to get bought or go public. 

It's best for the seller and provides them more security.

If you do move forward with an offer I would also see if you can get the security deposit transferred to an escrow account held under an LLC you form for the property.