Thanks Bill, my biggest concern is the space for the Washer and Dryer isn't big enough.

Here's a revised response with a more structured format:---Hey JeffIt sounds like you’ve got a solid deal in the works, but I totally understand your concerns about the 5-year seller carry.

I know not typical on here to have such a little amount in loans but we enjoy great cash flow that we live on, have lots of flexibility in what we can do and have no concern about making payments if the economy were to take a dump.

So, if you're concerned about Socialism taking hold, diversifying your portfolio by including real estate may offer protection and help you sleep better at night.

However, a lot of concerns can be mitigated with looking at their past rental behavior in a lot of different settings.

Our biggest climate risks in central Texas are typically wind and hail, so anything of concern regarding the roof could get an applicant declined including trees too close to the roof surface, roof over 10 years old, etc.

@Lorenzo Wright, Once I've established a relationship with them, I'm not as concerned.

I'm not saying the list is ridiculous,  because all safety concerns should be addressed.

I have not been concerned about negative cash flowing due to gaining so much equity. 

Given your concerns about California’s high prices and tenant laws, exploring out-of-state markets is a great idea, especially for rookie landlords.Oklahoma is worth considering!