of course you have to handle the inquiries… but it’s pretty easy… we’ve done it multiple times.Your 6% appreciation approximation is less than the 7% average return the stock market  does long term - and lately it has been blowing that figure away - though as they say - past performance doesn’t equal future performance. 

I believe IB is likely to out perform the San Diego general market.  

Look for feedback on their service quality, property management, and overall investment performance.

The higher the stakes (as in value, timeline or risk) the stronger lender profile and performance will be required. 

In the end, I likely lost a good chunk of time and money by choosing price over performance.

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

But again, you shouldn't be locking up properties without knowing if you can perform on them.

Since this is an unconventional lending instrument, you have to make sure all your ducks are in a row (contractors willing to perform the work, dates of work start/completion, all additional paperwork completed, etc), but it was well worth it.

. $100k performing I/O note for $90k), how do you classify the extra principal you get back when the loan matures?

In any given month (year) a property may be unprofitable, but as long as the overall portfolio is performing I am satisfied.