The home is less than 10 yrs old and needs relatively minimal maintenance.

I have made pretty substantial income (over million in a year) in a different industry several yrs ago but it all crashed (guess I was stupid enough to think it would go on for ever, livin large).

Though, I'm considering giving this deal to an investor if I can get the price down low enough.The place is a complete mess, the garage is used as a bedroom, paint colors are neon colors, countertop tiles are black, everything is outdated by @ least 10-15 yrs, but no structural damages.

I thought I read a CNN piece a 6-10 months ago and they were saying National average of SF home appreciation over the last 30-40 yrs was 6%.I guess that might be a good "general" rule of thumb to use when trying to project.

have no idea about rehab costs yet but the house is only 8 or 9 yrs old so prolly not too extensive.

They want it and would like to lease it for us for a 10-yr first option triple net.I have been negotiating with the owner and think we can get the building for $200k and would need to put another $200k into it for improvements to lease.I have not started hard negotiations with leasee (waiting until i get control of building, but will not close until executed lease is in hand) but have casual discussion of $9/sf.So we are looking at cap rates in high teens and a hefty cash flow with paying off the building in 10-yrs.

I did something very similar 15 yrs ago and it worked out for me!

Ownerfinanced for as long a period as he'll go for, 5, 7, 10 yrs Small option fee paid to seller at the time of contracting, down payment due upon exercising the option.During the option period you find a buyer with 15-20% down and sell on a owner finance note 1 yr term with up to two renewals as long as buyer makes all the payments.

Loan amount would be approx $175k-$200k at 30 yrs fixed rate.Any thoughts/suggestions would be greatly appreciated.

(I've worked in online web site development and programming for 20 yrs, but it's getting a little old and doesn't pay as well as it used to.)