Anyone out there with experience using foreign private money, for example AUD, and how you handled the risk of currency fluctuation?I can't see anyway around this risk.  Either I take it on or the lender does.In short...

Est Value 700k  offer 500-600k (obv assuming owner has the equity)I am unsure if we (so cal) are in a bubble; but, the market right now is madness; and I would like to buy but with a bit of a cushion in case values are inflated.

What are your other yielding asset alternatives - a 10-year bond which pays you 2% (and is a negative yield after inflation)?

My guess is the seller is asking above market value which is why it's sitting and why the seller is willing to carry a 2nd to get the inflated price. 

The main differences are leverage and inflation.

Most are going to be inflated.

The average 12-month rise in inflation-adjusted home prices since 1975 is about 1% per year compared to the current 4.1% pace, arguing for a bubble.

Add money to the note that you will pay in the future with inflated dollars. 

Research: estimated appreciation for your property, realistic expected return on the potential new investment, local inflation, growth...3). 

Interest rates are low encouraging investment spending which will cause inflation.