Owner will hold the note at 6% with IO payments for 3 years. 10% down.

@Mark Cruse thanks mark - that's the vibe I was getting as well, super negative and not informative (from one person) This was a success story just on raw numbers - there are obviously more expenses, but some took it and seemed to take it at face value which did leave me to get defensive which I shouldn't have. side note - knowing how to communicate and navigate this community seems to be the key.

Often the best risk, hassle and tax-free approach is to pay down debt.If you have a car note, credit cards, etc pay those off first. 

Long-Term Investment Perspective:You’re right in noting that the market can seem saturated now, but it’s important to take a longer-term view.

I believe once that is exhausted the private ones pick up the tab but they noted it will get passed on to consumers.where I see the issues are if this is now a one in every 5 or 10 or even 20 year event and it's a $1M home (cost to build not total value with land)  then the insurance for these areas is not sustainable.  

-While not immune from price escalation, there has been no indication of price escalation thus far.A couple of other notes:-As mentioned, we visited last month. 

A few comments from my perspective (and after reading @Dan H. comments):I agree with Dan, and view this as a negative cash flow property as well, given that more than 20% down was necessary to make it work with what I suspect is a non-commercial 30 year note given the interest rate. 

California is expensive as you noted.  

What your deal would ultimately entail is a buyer who trusts you enough to give you $125k and trust you to pay it back while his property is encumbered by both your seller finance note and your original mortgage for $125k.

Another thing to note is that if you’re self employed with no full time W2 outside yourself and a spouse a solo 401k is exempt from UBIT on leveraged real estate.