People think if they can afford the down payment that they can afford the deal but even in deals where the purchase is 90k or less you will still need to be liquid 25k because you figure:15k to close5k to front contractor to get started5k (6 months holding costs)Insurance and Misc costs: 2kSo you see the life cycle can cost 25k+ even on a small deal. 

Here is the transcript for a short video I will release next week on market selection. 

I also think paying 3% for zero interest money is also well worth it. 

.- At the surface it sounds like a great opportunity, but I think there needs to be some more digging into the numbers to understand if its worth it at that price, and what the risk profile is.  

Then moving out to another home in LA/OC using an FHA loan.This is my grand plan... let me know what you guys think!

What do you think of the comment from @Dave Foster? 

You can find this under section 280 AThis rule does not apply to properties converted into rental use I think thats actually why they call it the "STR loophole" right? 

To maximize the number of transactions you’re involved in you will need to:Be Top of Mind when they think about moving - which requires consistent reminders.Be seen as an Expert – which requires a consistent message and Evidence of Success storiesGain their Trust – which requires communicating integritySo, start out by listing everyone you know in an Excel spreadsheet.

Watch them for a couple years first.I think long island sells tax deeds, but I'm not as familiar with those. 

Definitely something to think about.