I did not know, living in Florida, about the  California Foreclosure Prevention Laws which have increased the time and the monetary cost of foreclosing on property in California.

I'll edit and increase capex and PM and readjust the water/garbage/sewer fees and see what happens. 

For instance, if I purchase a property with a conventional mortgage, will it be harder to refinance this in 6-12 months after the property is repaired and the ARV has increased?

Maybe use this to help with closing costs and improvements for your multi-unit home you want to live in/rent the other units.This would let you charge more for the other units being rented and increases your cash flow.

Questions: Seller proposes to value the house at $85,000 and charge 5% interest for the first year, and incrementally increase the rate to incentivize the refinancing. 1) Is it likely that the buyer would be able to refinance within a three year period given his credit situation?

@Doug PetersYou can invest in single family or multi family in Victorville, Hesperia, Apple valley and adelanto In high desert area You can invest in Redlands, Beaumont in riverside county I am told Yucca valley is also promising In the metro area, you can network on different real estate meetups and check on duplexes, triplex or quads in long beach, wAtts, Inglewood etc I do invest out of state in Memphis but prices have increased in last couple of years and cap rates in decent areas have lowered.

@Tanner MarseyI'm in agreement with the others in this thread - it is time for a 1031 exchange if you are looking to increase cash flow. 

He plans on living in one of the units and renting the other 3 out as well as improving the property and increasing rents. 

Answer: 900,000● Reinvestment amount = $1M● Basis increase/Capital gain avoided = 100,000 (10% of Reinvestment as held for 5 years.)● Gain included = (Reinvested amount - basis increase) = 1M - 100,000= $900,000.If A also sells the investment in QO Fund in Dec 1 2031, 10 years later, he does not recognize any capital gain on the sale of his investment in QO fund.If A sells the investment before 10 years, basis in the investment is based on the time it is sold:Basis starts with Zero and increases in this order■ Held for 5 years - 10% of gain reinvested■ Held for 7 years - 15% of gain reinvestedBasis at 5 years = 100,000Basis at 7 years = 150,000Thus gain/loss is determined based on the FMV of the investment less the basis at the date of sale.

We own enough real estate and plan to significantly increase our stock investments in the next few years.