You can even convert a quad into a 2-unit or a 1 unit into a triplex ...as long as the final product is a 1-4 unit residential property. 

Loan product from All In Credit Union How did you add value to the deal?

Loan product from All In Credit Union How did you add value to the deal?

I'm not sure how the Tucson market is but I wasn't able to find any properties qualifying for the FHA loan program for a 4-unit property in Los Angeles because of the Self Sufficiency qualification.Now I'm looking at buying a single family home and buiding an ADU on it since there are many low downpayment, low interest loan products out there for this strategy.

During a discussion with my mortgage broker today, she mentioned that as I start doing real estate flips, an Exposure Line will be a good financial product for me.

I was assuming based on the context provided that there was/is a negotiation happening to satisfy the lien and the owner which is a valid strategy in acquiring the property and also preventing it from going to auction in the first place.Regardless of being bought before or after auction, it is indeed a distressed owner situation.

I couldn't find any loan products that could make this happen.Now I'm leaning towards buying a single family home in a decent area of Orange County and use it as my primary residence.

If so you may need another short term loan product to get the rehab work done.

Lima One Capital also has a rental product.

Your concerns are valid and it's great to be somewhat conservative especially when jumping in, and due to that I think you'll figure it out just fine.