If you ever are interested in a more affordable market I'd love to connect on what the Midwest has to offer!

@Heather Luu first, make it more efficient by only worrying about deadbolts.There is actually very LITTLE additional protection a lock handset offers in addition to a deadbolt.On the properties we manage, we remove all keyed doorknobs and just use passage locks. 

If a single-family owner-occupied property is worth $400,000 - I wouldn't invest more than $280,000 (70%) in a note secured by the property.ITV takes priority over desired yield - so even if the note discounts to $350,000 based on desired yield, the investor still won't go beyond their maximum ITV. 

You should consult a tax professional for an answer based on your unique situation, this is not tax advise just general information.

Because so much has been done wrong & has to be undone:-(PS Maybe Jonathan will make you an offer?

Based on our preliminary plans we should be able to relatively easily convert the basement into a 3rd unit or just rent the 1st floor as a duplex down 4bd.

I don’t know what’s going on of course, but I can offer the possibility that the seller tried to negotiate the bill down and the contractor realized he was being squeezed so he took action.  

Good to know as I have a property coming on the market and we had one off market offer already all cash but at 10% list price discount (which we most likely will reject).Curious if you think the california fires will assist the market since many of those people need places to live for years and I am guessing some will flee california?

I went through everything until manually signing 300 letters and sending then off to only receive one single call back from a curious guy looking for a make me move offer. 

The proceeds could be reinvested into something with better returns or even used to simplify your finances(Like Bettment still offer 4.75% for new customers, and you don't need to do anything!).