My impression is that underwriters are concerned with papering files for sale on secondary market based on recent lawsuits requiring mortgage buy backs.

Otherwise, you're looking at secondary market acceptance for residential in that geographic area.

That is definitely some fuzzy math.

I think what you are seeing is common wholesaler eraser math..."

In short, I'm considering either selling my current house or renting it out if the math dictates that as the better path, and looking into finding a multifamily (2-4 unit) building where I could live as an owner/occupier.

Do they not sell to FNMA and Freddie on the secondary?

Others have said its impossible to get a deal like that in LA, but the math still applies.

I know it sounds like a lot but when you start thinking about it it makes sense (PM, taxes, ins, vacancy, legal fees, turnover ect) so start doing some math with that in mind and you'll start to see what you need to look for in an investment property.

Obviously I know you want to be sure you are bidding on a senior lien foreclosure, do secondary liens survive the process?

I was the founder of a post-secondary school in Utah.