With cash out refis, there is no market input on value.The time period since acquisition is also an issue.If I understand the numbers - $30K plus $440K loan plus $80K assignment fee - total “purchase” price is $550,000.I would assume lender is asking how is current value one year later $725,000 when you effectively paid $550,000 a year ago?

Hi all, just as an update, there was finally a city that implemented AB 1033, this is San Jose CA, effective July 2024.  

You can get black exterior in a variety of sizes under $300 a window, and the standard white is even more cost effective.

This makes the strategy viable for managing a due-on-sale clause, as it effectively keeps the transaction off the lender's radar, delaying or avoiding the clause's enforcement.While this method can solve the due-on-sale clause issue, it does come with a calculated risk—primarily depending on the trustworthiness of the seller and the specific legal environment.

It ultimately directly effects the pricing  

Cost overruns, who comes up with the money, how is return effected? 

My tips essentially boil down to the compounding effect of a lot of good decisions over a long period of time/slow and steady wins the race.

Your structure is complex and not cost-effective.

Being able to enter a property with only 5% down means you can leverage your money way more effectively as well.

A simpler and more effective strategy is to understand the tax implications and plan accordingly, possibly by working with a CPA who can review the specific syndication's operating agreement.While UDFI is a factor to consider, it shouldn't be a deterrent to investing your retirement funds in real estate syndications.