We certainly have many fix and flippers, and they generally raise equity (vs. debt).

They eventually sold their business to another company and things were fine after that.All the others were easy.If you are going to switch, you might want to try that after a resident moves out.  

I am looking at this from the LP perspective, because to the GP, equity is the MOST expensive form of capital.

Investment Info:Single-family residence buy & hold investment.

She put a portion of the down payment (15K)...and of course there is a little equity...

It’s a great way to get your feet wet in real estate while building equity.

However, you can defer taxes under §1033 involuntary conversion if you elect to reinvest the proceeds into a similar rental property within two years (three years if the government condemns the property or threatens to do so, and four years for a principal residence in a federally declared disaster area).To reduce taxable gain, consider:Electing §1033 treatment and reinvesting the full $300K into a new rental property to defer taxes completely.Partial reinvestment, where only the portion not reinvested is taxable.Properly documenting all replacement costs and property details to ensure IRS compliance.Using cost segregation on the new property to accelerate depreciation and offset future taxable income.Since the §1033 election must be made, consult a tax professional to ensure compliance and maximize deferral benefits.This post does not create a CPA-Client relationship.

You ARE subject to CA LLC tax just by the fact of YOU being a CA resident, sorry.

@Jay FayzIt's possible to use an FHA loan with a 5% down payment, but keep in mind that the loan is intended for primary residences, and you'll need to live in the property for at least a year.

I encourage you to interview property managers to determine what their approach looks like when managing properties for an investor who does not reside in the market where the property is located.