Would a small multifamily cashflow and be a better option for you?

I have an option to purchase an MR1 lot in a great location in LA but I'm skeptical regarding uses for this kind of land.

Hello Frank,It's fantastic that you are looking into your options! 

I'm originally from San Francisco, CA and started investing in 2021.

I would own the company as a Franchisee, but not sure if this a good option with all of the associated fees.

For instance, let's say you do the rehab and go to rent it...considering the relatively low value of the property, it's reasonable to expect that the tenants will have low or no credit, they may be unemployed or on income assistance, they may have minimal employment options, and/or they may have a very spotty history with prior rentals.

I have an option to purchase at an attractive price but would rather not bring cash to the transaction.

Rent control is another strong factor as many cities have super strict rent control for duplexes and up with Oakland and San Francisco leading the way.

Hey @Pavan Muralidhara I ran into the same issue when I started investing in 2021 while being born and raised in North Beach, San Francisco.

Definitely slow down and get a handle on the hidden costs and benefits in a few different options.