Performing Note 
Kansas City MO 
Price $25,200 
Selling 138 payments 
Buyback Option After 60 Months 
Value $140,000 
Current balance $35,687 
Original balance $37,000 
P & I $324.70 
Original term 360 
Remaining term 297 
Investment to value 26% 
Loan to value 36% 
Interest rate 10% 
Effective yield 10.35% 
Seasoning-Stellar - 53 Months 
Dodd Frank N/A 08/14/2012 
Projected rent $947

@William DeLuca As others have pointed out, that's not going to be enough to buy a MF in an area that will perform well for you.

I also know about the due on sale clause (Which is rare on performing loans correct?).

Cost segregation studies are often performed to isolate and value the individual components so these items can then be depreciated separately over shorter lives.Whether it is worth it from a cost benefit standpoint for SFR's in my opinion is debatable. 

I can understand that decision even if history indicates that San Diego will be the better investment (past performance does not necessarily indicate future performance).The verifiable facts are that San Diego has been a very good long term buy n hold locale (especially for financed buy n hold) and that there are indicators indicating it will continue to be a good long term buy n hold locale.

We purchased a non-performing note a few months ago that was slated for foreclosure not long after the note purchase.  

The person needs a contractors license to perform the work he did and can be fined tens of thousands .a handyman can not do work that needs a permit or is over a $1000 bucks When confronted he will remove the lien or face the consequences

What would be your top-performing lead source if you did not have lists?

I've found partnerships generally perform better and have greater combined strength than a Sole point person.

The only thing that it could do is lower the amount you can borrow for the investment due to increasing your DTI, but 10k isn't that much. 1.9% is pretty low and should be easy to out perform the debt...