It would be great if you had any gains with which to offset them. 

Also, is this an additional cost you cover? 

Tips and Best Practices: Lastly, any additional tips, best practices, or words of wisdom for a first-time home buyer exploring creative financing options and navigating the real estate market would be immensely valuable!

Additionally, if anyone has just general tips and things to avoid, that's great too.

Know how you plan to handle the property in the future, whether it's selling, refinancing, or leveraging the equity for additional investments.Consult Professionals: It's advisable to consult with real estate professionals, financial advisors, and possibly a real estate attorney to get a comprehensive understanding of the local market and ensure that your financial strategy aligns with your goals.Given the unique challenges and opportunities in the Los Angeles real estate market, staying informed, conducting thorough research, and seeking professional advice will help you make an informed decision.

Whatever I give up in “market” I gain from local market knowledge and easy access to the assets all within 30 minutes from my home. 

(BTW you have to calculate the proper percentage to hit your desired yield)Next you determine the length of the option and any additional provisions that you desire.

Additionally, sellers are covering closing costs in many cases.

I would encourage you to get involved in any real estate investing clubs in your market, search for other investors in your area, and gain input from others on investing in general.

Network to find a CPA who is good with Real estate investments and a Real estate Agent( considering my inexperience,untill I gain sufficient knowledge and confidence).Im still paranoid about investing into c+ class hoods due to Tenant screening ,which I have no knowledge of.