@Ronald Rohde, sounds like you had a bad experience. 

Sounds like you've had some good appreciation on that first one and maybe it's helped offset some taxes on your W2 income? 

SB 9 sounds like a real game-changer for California investors.

You should have ran this question as Anderson Business Advisors was suggesting this set-up.The set-up is also difficult to understand that you likely have to engage your attorney everyyear with questions that you have where they would be billing you.I like the slogan regarding keeping it simple.

The name makes it sound like someone that will discourage all purchases. 

Paola, it sounds like you've done a great job building equity in the property, and the renovations have definitely paid off!

Unless the seller has to be immediately out of the mortgage I see sub-to as an excellent cost reduction strategy. just reading between the lines.. but if the bank says they will take 91k for it sounds like the mortgage is in default so a sub to might not be possible.

And if they are a hobbyist/part-time builder, then they should engage the proper professionals, i.e. a title officer, civil engineer, architect, contractor et al to assist in reviewing the project's feasibility.

Sounds like we may have a few things in common on that! 

It sounds like you are missing a conversation with the tenant to understand the situation.