I have heard of purchase agreements written on napkins holding up in local court here so not sure if my fear is warranted.Does anyone know of any specific requirements in California that I need to worry about, or is the contract I have good enough?

By my napkin math, you'll pay $44,094 in interest with this gentleman's repayment schedule and $51,894 with a normally amoritized mortgage...a savings of $7800 over the life of the note.

A funky 'napkin' outline of terms will cost more.Now I do them myself after paying for it a few times.

A back of the napkin math says it should be more like 2.78%.I would recommend going to the FilePlace here and looking for the spreadsheets.

Did the issuer get an attorney to create everything, or are you looking at the back of a napkin for the legaleze?

Similarly, just because the 1% rule is not met does not necessarily mean that the purchase is a "bad" buy either.But yeah the concept is pretty much irrelevant to large multifamilies.I think the 1% rule just arose as a back-of-the-napkin rule of thumb for SFRs and small multis.

Heck you can write up a mobile home purchase agreement on a cocktail napkin:)-As already mentioned-mobile homes come with a title much like an automobile title. 

Just make it safe sound and sanitary.

But, I think above is a good "bar napkin doodle" of a game plain.Is that helpful?

Didn't know a thing about RE investing, just crunched some numbers on the back of a napkin and bought!