Purchase price: $169,000 Cash invested: $33,800 Property was recently renovated to increase the value of the property and the cashflow What made you interested in investing in this type of deal?

However, San Diego is an extreme case.However rents increase fast in San Diego.  

I increased my Heloc on my primary.

These rules have increased risks by making it difficult to get rid of poor tenants that pay their rent.

@Bryan HartlenManaging low-end properties can be demanding due to higher tenant turnover, increased maintenance needs, and frequent rent collection issues.

The mortgage would stay under the seller's name.The buyer could then rent out the unit, renovate, etc. to increase cash flow or make more money.But aside from a possible "due on clause" being called by the mortgage company, what's the benefit to the seller?

When we create our business plan, we also include our exit plan.We'll only proceed if we can clean this up, acquire new tenants at higher rents so we can increase our NOI, which in turn should reflect our cap rate and profits.Since this asset class is new to us we will tread cautiously.Scheduled to preview tomorrow. 

Hopefully kept good records of improvements / anything to increase the basis2.

FYI, a Cost Segregation Study will "not" increase your chances of an IRS audit.

While rates may not decrease, the significant double-digit increases should level off.