This can be by working with smaller banks, using your current property as collateral, taking a HELOC out on your current property, negotiating favorable owner financing terms on the new property, etc...

Finding a favorable property where the numbers work is very very important, but also remember Brandon Turner's  wise words, "The first property is about getting in the game."

I agree with @anthnoy angotti  on this, In most cases its not only the sale price that's is important to the seller. lots of other factors can be addressed in your offer that may tip the balance in your favor.

Hopefully it works toward the son and my favor.

@Chris MillsLaws are favorable.

There are a lot of of nuances to properly evaluating this, but let's simplify it like this.Stocks:- Day 1 - Buy $30k in broad market index funds- Day Z (30 years months later) having reinvested all funds @ 8% RoR = $384,706 MOL (more or less)Real estate- Day 1 - Buy a $150,000 @ 20% down = $30k- Day Z (30 years months later) asset is worth at least $292,400 (a 2.25% appreciation rate)- Along the way you earned cashflow- Along the way you had tax benefits- Less "sequence of returns" risks A linear calculation may lead to a conclusion that real estate is a lower rate of return than the equities market (and it truly may be), but there are aspects to real estate as an investment class that make it quite favorable, especially in a non-tax-advantaged bucket.

Those areas will be more favorable for purchase prices as well as inventory but you definitely do sacrifice lifestyle and convenience.

When I look at real estate market in socal, price to rent ration, regulation, and real estate tax does not seem that favorable to me.

This will be done from my own funds as a one-time favor for a friend.Does anyone know where I can get a transactional funding note/contract or whatever document might be used for these deals?

At the end of two years, purchase your own home, again with favorable FHA terms.