New-home sales hit a seasonally adjusted annual rate of 698,000.

I've been reading more about subject to and here's what I've learned:-Good for sellers who are off market-Have low to no equity-Have a mortgage with a low interest rate (less than 5%)-Be absentee or out of state (vacant property, or have a tenant)The buyer would then take over the mortgage payments, and have the seller sign the deed over to the buyer.

That does not build confidence in investing in an area no matter how many friendly seals bark at you.Do L.A. and California lose carbon credits for all the noxious smoke?

I'm open to properties were cap rate is around 10%+ and Return on Cash is 10%-20%. 

Credit is in order and I have a steady income.

@Jonathan Bombaci recommend using that amount as a bargaining chip for lower rates.80% of evictions are wash, rinse, repeat. 

Of the conversations I have had with people discussing hard money lending, some seemed opinionated in that the high interest rates and terms were enough to scare them off.

I found out the failure rate is 95%. 

"Collin, why are your rates twice what they were last summer?" 

I would look at it in terms of whether you can afford a worst case scenario where you're covering the deductible and have a credit line or cash to front the re-build cost and getting reimbursed from insurance afterwards.