I grew up in a rough hood so a couple hobo hippy types smoking weed at a surf beach isn’t something I get all scared and uptight about like maybe you do.

I try my best to stay motivated and focused even though had a few rough experiences on other projects before with them.

I'm curious what anyone here thinks of the owner financing terms.Listing Price: $374,900Down Payment: 25%Term: FlexibleInterest Rate: 6.25%7-year balloonThe property's net income over the past 3 years is averaged at roughly $42k per year. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Thanks in advanced,Eric@Eric Lowe I don't know if the cost is different in San Diego, but the two companies I know here in Florida charge roughly $2,500 for a SFR Cost Seg.

They bought the property with tenant in place for roughly $1.5mil under market value for property when vacant.

You can sit down with a lender to "run numbers" and find out roughly what you qualify for. 

and you need to be ready for rough turnovers - potentially spending a couple thousand dollars every time a tenant leaves. 

i keep seeing:1. buy out of state rental in a solid neighborhood with long-term potential (just as you are recommending) but then...2. have one rough tenant turn that costs a couple grand, and3. give up on real estate investing, and turn on everyone involved in the transaction for not guaranteeing that sweet cash flow in month 1 lol, yea there is a decent chunk of investors who get really butthurt by that one bad unit turn and just give up.

Hello Sham, the fact that there is no lease agreement is really rough because that information is basically always in the lease.