Robert Adams - just curious why you would use 2008 "Peak Prices" as a measurement when those prices were completely artificially inflated.

@Brent Coombs I only meant that as a way of trying to inflate the price I can pay to lock in a deal, but as Sam and Steven pointed out, the likelihood of getting an owner to carry a 30 year note is slim.  

If you were in a large market that were/are significantly inflated, then a 20% equity position might still be very risky as prices could drop 50%.As far as tax consequences of paying interest, of course you don't want to spend money on interest simply for the tax deduction.

What I hate about dealing with them is the usually have a super inflated ARV, a term I do not use.

Each year inflation is depreciating your asset.3. 

In this magical world, imagine there is no such thing as inflation or taxes.Let's say that you can buy a conventional (fee simple) property for $100k cash.

In a downturn there is usually no cash flow growth or appreciation increases meanwhile your dollars depreciate by inflation every year.

Those paying 6 caps probably expect an extended period of low rates, and want the added benefit of some inflation protection (rents tend to rise with inflation).

Then I got lucky to marry someone like minded (and I recall the Millionaire Next Door (great book) also found that having a good "defense" or saving money was a key, common theme of the high net worth accumulators of wealth in the US)...Back to the question, I saved some money, but then I did not just bury it in the back yard (where you actually lose money due to inflation, or even put it in a savings account which also loses money relative to inflation), but I read Peter Lynch, Warren Buffett, John Bogle and put what little I saved (and we saved post marriage) into quality stocks and index funds...

I like those kinds of deals versus showing a high cap with an over inflated leases on the books that might trade down.