Roman is correct, except the tax certificate/deed route doesn’t give you possession....it just sends it to public auction where you have to bid against everyone else.

Whatever you do, don't give up - you're on the right path.

I look forward to meeting and learning from everyone while I pursue this new path.

@Roderick McCleary If you're cash flowing $730/month (and calculated that correctly) I don't think you need more calculations lol. 25% down on an investment property is pretty normal.

Chris mentioned 5 or more being commercial - that is correct and it is very hard to be approved without a very strong history of rentals, which you have some but it will still be an uphill battle. 

It’s located in Redlands California I have gone to the city and spoken to the planning department and, I seem to meet all the criteria of what I am trying to split Just hoping that someone might have some more guidance or information on how to do this correctly and what the cost might be associated with this project.

If your purchase price, repair cost, ARV, and monthly rent numbers are correct, then this is just a terrible deal.

@Ali Hashemi, @Robert Carraway's absolutely correct. 

But if you plan development, you would not want to hold two adjacent lots in two separate entities that are prohibited from cooperating, as you were correctly concerned about.

The solution to this one is pretty simple: find someone that is familiar with 2-4 unit residential lending and knows how to package it for underwriting correctly.