I advise clients NOT to buy empty lots, even ones right next to their properties and even if you're only paying a couple hundred bucks.The logic is pretty simple.

That logic and view is totally irrational and not applicable.

The logic makes sense. 

It would defy logic to first pay default.

Buy 4 more properties - one approximately every 3 months, based on the following logic = always fill existing property with a tenant prior to moving on (I'm new, and this is my way of managing risk); build resources to purchase next property (I have pretty decent purchasing power right now through conventional lending with my current job, and I also have a private lender ready to loan on my next property, and I also get a quarterly commission check that provides a nice financial bump every 3 months); finding a property takes time, but it is worth it to find the right property in the neighborhoods I want to invest in, at the right price.

We can only hope some will listen to your logic:)

Anytime someone brings up a reason you will counter it with your own logic and actually push yourself further and further away from where it seems like the place you want to go.

And the logic is simple, if everything else like this trades at 7.5%, then why shouldn't this one also trade for that?

I believe this is a logical first step. 

Let's look at your situation LOGICALLY:)OPTION #1With your combined $100k for a down payment, you could buy a $1M+ SFR home in California.