SoCal CAP rates do seem to be 5% from the redfin descriptions I read on some of them.I'd much rather buy a 1 million dollar SFH in north county than a 1 million dollar 4 unit in a low income neighborhood. 

Depending on the situation you may find a quad as well that would effectively let you use 75% of the rental income from the 3 units you don't occupy.

If that is the case you will need to hire a property manager who will likely charge 8-10% of the monthly rental income.

Income Rose by up to 30% in Some U.S.

What the benefits for the seller are is that they CAN foreclose almost as easily as a bank if need be; there is a good chance that they can get a better rate on that Note that they will carry (say 5-10%) than what they are likely to get with their equity otherwise; if might help them sell a property that is hard to sell otherwise; and might be advantages income tax wise also.One example is a 4plex that just came online here in our market.

Realistically, your going to need to put in the time it takes to earn your brokers license if that is the way you want to go.

Can I claim the losses as active against W2 income?

However, I will still be required to pay income tax on the income generated from my private lending activities.

Now though, it’s a real issue because it’s affecting my rental income.

Investment Info:

Condo buy & hold investment.

Purchase price: $230,000

Cash invested: $50,000

2 Bed 2 Bath Condo with attached 2 Car Garage in Walled Lake city center. Very close to Walled Lake s...