I informed her that despite her knowledge it is actually indeed legal.

I actually just found this site below while googling something else, but was surprised to see that downtown had the highest rents.

@Njeri S.Yes, you can.You can actually take cash out and buy the second home concurrently as Fannie and Freddie don't require a waiting period.

What list are you mailing to (you don't actually have to answer that)?

Also, if you're looking to learn/network, I'm actually hosting an event next Saturday at a property currently being house-hacked in PB.

Or get the property in my hands, do a few more deals, maybe flips to get some more liquid cash, or connect with a private investor or a builder/experienced investor who knows the ins and outs to do the construction on 2 potential luxury single family homes (comps in the area are between 400-700K) or 4 townhomes (comps around 325-450k in the area)), and actually build on the land.

Or get the property in my hands, do a few more deals, maybe flips to get some more liquid cash, or connect with a private investor or a builder/experienced investor who knows the ins and outs to do the construction on 2 potential luxury single family homes (comps in the area are between 400-700K) or 4 townhomes (comps around 325-450k in the area)), and actually build on the land.

I've read through the contract and will summarize here with simplified numbers (not the actual numbers) what I believe the contract says and follow up with some questions for you more knowledgeable members:1) Purchase Price: $100k2) Initial Down Payment: $10K3) Buyer pays seller monthly payments based on 30 year amort of 90k at 5% which is $484/month4) Remaining principal balance to be paid off on the defined Closing Date (roughly 2 years from now)5) Buyer pays taxes and insurance6) Buyer to provide Seller a Loan Commitment from a Lender on or before the Closing Date7) Seller will transfer Deed when Buyer pays full Purchase Price8) Buyer will pay the Seller's existing monthly mortgage payment that exists on the property, which is $100/month, directly to the bank.

I heard or read some really good advice on here which was to tell your tenants you are a property manager and don't actually own the property.

Unless you are working with some pretty big numbers, the amount of income actually subject to the tax will be very low, thus keeping the rate on the low end.For example:$100K property$40K down, $60K loan.