They are primarily concerned with credit score and how well the property is projected to perform.

They are projecting the home to take 6-7 months to build. 

Just make sure the loan structure fits the deal — fix & flip financing looks very different than long-term rental or DSCR takeout.For context, at Garwol Financial we help investors finance fix & flip projects in Chicago and across most other states, and we often work with out-of-state buyers who are building teams remotely.

If you have >50% of your existing capital/funds tied up into the first BRRRR project my inclination would be refinance sooner rather than later waiting for better terms/conditions to refinance.... not knowing whether that will take place.

Do you think it would be easier in another state outside CA if I could be there while it happens and have property/ project management support? 

You’ll need to occupy one unit, and lenders will scrutinize projected rental income and property condition closely.

Some of those complaints have merit and there are clearly bad actors in the space, but many of these situations involve projects that are simply delayed or underperforming, not fraudulent or mismanaged.This all converges on a simple point: it is critical to vet potential LPs before taking their money.

If you get a project going by using credit lines or hard money, you must be sure going in that your permanent loan will be great enough to pay off all the underlying loans on the day you close on your mortgage.

To justify the cost, you should get or hire an engineered study for this to ensure the projections match your income level.

The second property, since it isn’t rehabbed yet, will also benefit from a proper study once improvements are complete.From my side, I track all my involvement hours and project activities using tools so I always have clean documentation ready for my CPA it makes the whole depreciation and participation side a lot smoother.