Mortgage payment of $870 PITI with 20% down at a 7.25% investor rate.

As a note, residential properties typically are not evaluated with cap rates, but I think you may have been saying a 7.5% cash on cash return or ROI.

Plus knowing what our re-default rate and our buyback rate is, we know that we owe note buyers less and less on their notes as time goes by.

However, with the rising mortgage interest rates upon us, originating and seller financing is a potential lucrative note space. 

Appreciation rates are solid and deals are still positive cash flowing.

And if you rehab you are certain you'll still only get the market rate of $1000.

Also what are the interest rates on your current loans?

I'm looking at Nevada - property tax rates are low and there's lots of appreciation.I'd recommend attending local meetups so you can talk with investors who buy in CA as well as OOS and ask lots of questions.

When analyzing your offer, make sure to factor in operating expenses, rehab costs, and vacancy rates.

I have a hard time seeing a property worth $625,000 that you're into for $450-500,000 cash flowing very well at $3500-4000/rent with where rates are these days.