Finally we purchased a home for $130k (Sales price) with a mortgage of $950.

Squatters are a real problem nationally and a study found that they target not only vacant properties but those advertised for rent or sale that offer 'immediate occupancy.' 

You start with a purchase and sale agreement and reduce everything to writing.

My duplex - built 1989, 2,060 sf, 2 bed/bath, 1 year old roof, value if I subdivide (county already approved) and sell each separately $150k each ($300k total)Investor duplex - built 1995, 2,300 sf, 2 bed/bath, 5 year old roof, value around $310kThe investors initial request was for an equal trade and they would pay realtor fees, which I replied wouldn't be equal due to buying/selling costs (recording fees, title insurance, closing fee, survey, inspections, loan fees, 1031 fees, accountant fees, repairs), taxes would increase due to new sale price, I'd trade a 3.75% mortgage for a higher one, and I'm on the 10th year of a 30 year loan so resetting that to a new loan would restart amortization and pay more towards interest.

Think about your individual chances of being affected.  

The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.

WANTED: CALIFORNIA TAX RETURN PRONeed real estate tax pro in California to go over proposed draft.Includes sale of rental property. 

Cash invested: $60 Sale price: $365,000 Sub-to deal with homeowner pre-foreclosure How did you find this deal and how did you negotiate it?

And you can do it with little cash, 5% down conventional is better than 3.5% FHA.House hacking also gives you a chance to cut your teeth in all major skills: analyzing deals, buying process, financing, working with contractors, advertising for rent, background checks, property management.

Would say there is a 5% chance rates will go to 3% in the next 20 years.