I've analyzed deals all over Southern California and most of the time the inflated purchase price gets rid on any possibility of positive cash flow.

My instinct tells me this is probably not great although it does mean there is commerce nearby so hoping that is a positive.

Despite the high prices, therer are still many options for multi-families to throw off a positive cash flow.

By surrounding yourself with like-minded investors and immersing into the world of real estate you'll be able to accelerate your learning and take the action faster!

In BRRRR, you buy a distressed property or at least one that has potential for substantial improvement, rehab it to build equity, rent it for positive cashflow, and then refinance out what you invested or more to have funds to do the next deal.

Either way -- I suggest you read the individual leases (not just one as they may be substantially different) to see how you can be in a position to get rid of the chronically past due if needed as well as frame for a future need of getting rid of the gentleman who is "getting back on his feet" in the event that he stumbles again.Good luck!

In my position, I have limited cash, I have about $15k saved and on average am able to save roughly $1k a month. 

So, if you are paying for a fair price for units in less than top condition and the rents make sense for the price (generate good positive cashflow), then you really don't have to worry about tenant turnover.

I would consider renting my unit out and buying another multi family (providing positive cash flow against that home) Any thoughts on how to tap into the equity?

Now the first position lender is foreclosing.