I read about the legal situation in the Monterey weekly paper.

Consult with a local mortgage banker for underwriting guidelines for your situation ( ie, landlord experience, reserves, debt to income).Start to develop relationships with local bankers as well, who may be more flexible.

I've never done one so I can't speak to the guidelines there.

I've got a 5-year old judgment in Virginia Beach (total value of judgment, legal, and interest currently around $8,000).

Technically I am going in with cash but am using the 50% rule as a guideline.

But you definitely want to have that information in the lease for legal matters.

Although not a commitment it lays out the salient bsiness terms and general legal requirements that are expected between the parties.

A straight lease-option can probably be done, as to doing it legally, it depends on which L/O deal you're involved in, what your position might be.

I am having a dilemma in finding a cash flowing property in Socal within resonable driving distance from my work..most everything is around 450k-500k for a 4 unit and being an owner operator in at least 1 (FHA guidelines) isn't going to net me cash flow...I have been getting very anxious because I fear I won't be able to acquire something that will be a good investment...

It might have back taxes, code violations, etc. that with the work involved make it upside down in value more than if you got it for free and fixed up and try to resale you still wouldn't make money but might work as a rental etc.You might want to look up who the filing BK attorney was and see if you can make contact with them to see where all of this is at.No legal advice.