Dale, on top of all the good information you have received here I would definitely add an exit strategy which would include a time frame to sell, refi or just revisit our original agreement to see if there are any changes we both agree on.Also in dealing with the death of one or both partners, I have heard that life insurance can be purchased to help with the buyout if necessary upon the death of one of the partners.

That makes sense Joel, I'll have to take a closer look at expenses and price and revisit the analysis.

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The new owner should have footing to collect past due rent but I would have to revisit that topic with my counsel to confirm. 

Hey All,I wanted to revisit this topic as I'm sure there are more than a few investors in California out there with the goal of finding cash flow.

Let's revisit the calculations:Tax ImplicationsOption 1: 3.75%, no points1st Year Interest Paid - $2,820.93Amortized Points Deduction - $0.00Option 2: 3.25%, 1.29 points ($993.30)1st Year Interest Paid - $2,442.52Amortized Points Deduction - $993.30 / 15 = $66.22Total Interest + Points Deduction = $2508.74Difference (Option 1 - Option 2) in IRS Deductions = $312.19Assuming one is in the 28% tax bracket, option 2 would result in the loss of $87.41 in tax savings.Principal BalancesThe principal balances would also be different at the end of year 1:Option 1 (3.75%) Principal Balance : $73,101.41Option 2 (3.25%) Principal Balance: $72,949.92Difference: $151.49ConclusionLet's revisit the total advantage gained by buying down the rate:$226.92 in P&I payment savings + $151.49 additional principal paid down - $87.41 lost tax benefit = $291.00 total advantageThe adjusted year 1 "rate of return" on the points paid would be:$291.00 / $993.30 = 29%Whew.

This HOPEFULLY will keep her from revisiting the property.

This is, however, significant for investors trying to revisit their capital and realize a faster ROI and cash flow.

I'm going to revisit that potential option, ever though he was against it 6 weeks ago.I may also have more equity in my current home, which a second mortgage might be able to tap.

., but they can’t move as fast as I want to and feel like my hands are tied.Couple that with the idea that once I get to some scale (say > 40 units) I figured I'd have to revisit the math and it could make sense to self-manage with the right systems in place.