If i would have financed it for 15 or 20 years the payment would smaller which would have allowed me to have enough money generated enough money to pay all expenses including taxes

In 2023, I received orders to relocate to Beaufort, SC, and was able to rent out my NC home immediately, generating approximately $500 in monthly cash flow after accounting for property management costs.

The 1% is meant to represent a point where the rental is likely to just barely generate some positive cash-flow.

generational wealth How did you find this deal and how did you negotiate it?

I can wait 5-10 years to create generational wealth.

Remember, if you find some generational opportunity, and it makes sense, you can refi and take the cash back out.

To me that would be simpler and also eliminate any additional expense to generate and record any additional documents. 

My goal is to build a real estate portfolio that can generate either passive or active income well into my retirement (58 years old now).

. $415K less rehab costs at $200K (20K/unit) = NET $215KYou would pay a % of the future value in this example, you certainly (and neither would he) wouldn't pay $1,392,857 for an asset generating $75K per annum, understanding that the value therein would be offered at a 3.2 CAP.

Take a look at the instructions for completing form 590, this will give you more insight.California wants to make sure you pay taxes on income generated in CA.