It's a year 3 or 4 refi to return 100% of the principal and then projecting a 10 year hold because it's great cash flow and all the money will be out of it. 

Dave Stech speaks on a number of RE podcasts, many times on MC Laubscher's Cash Flow Ninja podcast (one recently #848 on September 16, 2024). 

It's affordable and offers strong cash flow potential.

Purchase price: $80,000 Cash invested: $80,000 Single-family residence in Las Vegas.

Do they have spare cash?

curious how do they structure a note purchase that is not all cash. did they already own the note and just sold the note to you or something ?  

Unfortunately with those numbers it's tough to find a non-bank lender/financial institution that will lend.Usually loan minimums are $50K and the up to 75% LTV on purchase-money/70% LTV on cash-out refinancing, which basically means you need up 25-30% depending on the type of financing. 

I would lean into a cash out refi.

And, even if the liens were in excess of $255,000, the seller could bring cash to close and deliver marketable title.

You want to look for words such as cash basis, accrual basis, or U.S.