In California, there are so many disclosures that a Seller has to provide.

google All inclusive Deed of Trust state of CA.. that will give you a really good description and if you can find the actual deed of trust to read its a great wrap document .. in practice   you have a current 100K loan at 8%  you sell by owner and take a 125k note at 9%  the 125k wraps the 100k.. you continue to pay on the 100k the while the new owner is paying on the 125k  payment lets say on the 100k are 1k a month the new payment is 1.2k a month you make the 200.00 delta..

@Paul Merriwether and @Christie Gahan, 'fair return' is a constitution right of owners under US and CA constitution.

@Rochelle Gerber - are your Flip deals in CA?

  $50/sqft for a full interior and functional update, $100/sqft for a full gut down to studs, $150/sqft for newcon .If these numbers make sense I would want to visit the property for a true estimate, where it would be line item work scope development. 

Nick moved here from California and has built a successful Real Estate business. 

My fiance and I would love to purchase our first home sometime in the next two years, but the market in California is daunting.

In California, insurance companies are very tough now.

In the latter two areas you can even do some STR, not with tourists but visiting nurses, etc.

Happy to help in the Los Angeles, CA market.