I've read up on this method of investing a ton, I'm pouring through Nick's ebook as well as we speak...

@Brandon Turner It sounds like a couple of people have read you ebook!

Probably HML stuff to start or even private money deal.Look for accountability, transparency, solid paperwork and double digit returns!

One approach, of course, would be to capitalize the NOI based on your first-year of stabilized operation, and that would be reasonably credible with leases in place.Also, if there is rental rate, absorption, and vacancy history for similar properties, that data would be helpful in building pro-forma forecasts of future performance on your new properties.Somewhere in my mass of stuff here is a short ebook I wrote about the front-door and back-door approaches to analyzing a new income-property project.

I have a digital doorlock with three codes, (a master, a tenant, and a contractor code).

Quick to emphasize, Do Not request any city inspection of any kind, you will be asking LA code enforcement to formally cite and digitally document the violation and then put you on a timeline to correct the violation (typically up to 2 years, but I have previous clients that found ways to drag out to 4 years with extensions etc).

Even with double digit interest only Hard money loan.

In the mean time, I would always encourage anyone to look for long term rentals that they can get a good double digit return on as an investment strategy.  

It takes work to get high double digit returns.

I'd rather get a nice double-digit return on a loan secured by real estate at really low LTV than continue to risk equity in a market I feel is likely to crash soon.The risk/return profile of that loan beats the stock market any day of the week.