I'm wondering if I'd get a better deal & lower down payment options if I move away from traditional lending.

I am all for finding a motivated seller and getting a good purchase.The reality is most sellers have below market financing and little incentive to accept a noticeably below market offer.Unfortunately, in most markets paying market price with market financing bleeds cash as a traditional LTR. 2 recent studies show that it is cheaper to rent than own in virtually every large city in the UD. 

Because of our space needs, most of the local duplex options aren’t a good fit for us to live in, so a traditional house hack doesn’t really work for our situation.My main focus now is expanding my real estate portfolio in a way that makes sense long-term, which is why I’m looking at development opportunities and larger build-to-rent projects.

Looking at hard money loans to rehab cosmetic properties and then either refi into a DSCR or a traditional conventional investment property.

Some investors use BRRR, others go traditional, but the key is having cash flow, reliable management, and knowing your exit and hold strategy.

Even with a home manager, the owner must be hands-on with:staffingcomplianceinspectionslicensingfamily communicationsmedical provider relationshipsturnovercare quality issuesIt is WAY more operational than traditional rentals.Let me break down the key reality checks + the path forward.1.

For a single-family residential property, the options outside traditional rentals are limited by zoning, but there are a few creative paths people have successfully used, like home offices for remote workers, small professional practices, or creative studios if local ordinances allow. 

When the math works, this can absolutely generate strong cash flow with lower upfront investment than traditional rentals!!

It’s been cash-flow positive, with strong reviews, minimal vacancy, and runs on a fairly passive system I’ve developed.My Goal: Now that I’m local to Orange County/South Bay, I’d like to apply the systems, experience, and insights I’ve gained to launch a property management company focused on both midterm/furnished and traditional long-term rentals.

Additionally, the California FAIR Plan can provide temporary coverage while you secure a traditional policy.