@Joseph T. , I would say analyze to make sure it will cash flow when you're no longer living there, but it's probably too much to expect any significant cashflow while you are occupying a unit.  

@David T. said that there is nothing that a guru can teach that's not already here on BP (and I've seen many, many others say the same thing here on BP as well).  

Did not disclose it on the initial application because it was not completed yet, and as we all know things can happen right up until the last minute before closing new loans, so I wasn' t going to say I had those loans when I really didn't.Fast forward to today, Refi/HELOC closed, underwriters on investment property noticed HELOC lien in MERS so they asked for a letter of clarification regarding the lien and why did not initially disclose, I wrote a letter explaining what I just said and so far no issues (*knocks on wood*)My situation had more time between them than yours do, giving the underwriters enough time to make sure it checks out without delaying the process.

I am also an attorney and am in the process of obtaining my real-estate license. 

And i can relate to the beginning of your story I was looking at a duplex for my first deal and primary home for a bit but the sense of no money comes into play given that my area is not that cheep and it is some what difficult to find a fixer upper in tustin. other than trying to obtain an FHA loan is there another way to do a lower down on a property?

Then after obtaining a loan at what ever cash he can get to the LLC, you buy the partner out under the Operating Agreement and being responsible for the LLC debt paying from your interest earned from management and your half of income proceeds.

Lot's of times folks do sub-2s / wraps because they are not in a position to obtain the financing to purchase the property, but can cash-flow the payments.  

With his assistance by using that house as 'skin" for me to get funding in leverage against my credit, any funding that can obtained at a fair LTV is what I'm after.

If you do find yourself in court you will usually fare better if you dotted all the i's and crossed the t's.

@Kimberly T.