@Pete Tam I use 5.5% to be safe because when I bought my residence I had to lock in my rate during a week of a lot of volatility.

I enjoy minimizing the volatility of my expenses so I can project out my cash flows with confidence.

Stock market is very volatile.

I'm beating that in the stock market, but with notes there's no volatility.

Especially when seeing the volatility of other investment options and the fact that money in the bank is at a negative return up to 9% for the foreseeable future.All in all I do not think this is a homerun, but I do think it is an inflation hedge which will offer a levered return and a small amount of cash flow.It is also worth noting with this deal there is some meat on the bone from a rehab standpoint if desired.

These loans can be from bascially anyone with money who doesn't want the volatility of the stock market or low returns of CDs.

Capital appreciation in good markets far outstrips any income gains one can make but it is volatile.

I would say if you do end up deciding to buy, buy assets (and in markets) that aren't so volatile. 

Or sell those and place it into less volatile real estate that you have more control over. 

Remember, this is a local real estate play and spreading your investments across a few areas to build multifamily will grant you better protection from market volatility.