California is awesome, low tax rates and insurance (out of the earth quake zone). 

I don't want him tied to a property that is going down in value (and may continue to go down in value for the next 1-5 years for all I know) and I don't want him to have exposure to liability, and I don't want him to suffer damage from an earthquake (which happen regularly around here), and I don't want him to hassle with the possibility of bad property management or any chance of being bothered by tenants, trash and toilets. 5.I suggested the idea of carrying the paper as possibly the most workable strategy, and the least exposure to liability and future potential problems, and he is in agreement with doing it.6.My money partner is even considering the idea of holding the note for a long time and likes the idea of a 5-9% return on his capital.7.My money partner does not want to trade for anything (motorcycles, boats, etc.) just wants to stay with cash.8.We think that "owner carry" is the best strategy to get out of this jamb with the least amount of a loss (altho there could be a break even or maybe even a profit if this is done correctly).9.The basic strategy is to sell the condo with owner financing and get the best price we can... hold the note for 6 months or so to season it... then put it up for sale -- probably to non-professional buyers so don't have to discount it like we might have to for a professional note investor (eg. a retiree looking for a good return on his cash because treasuries, CDs and money markets aren't working for him any more)... continue to hold the note until we find someone willing to pay an acceptable amount for it... hold it for 6 months, 1 year, 2 years or whatever it takes to sell it off at an acceptable price... meanwhile my money partner is collecting interest which he will be very happy about.

Hi Joe,You need to pay special attention to the landlord laws of the area you are buying in.New York for instance has rent control in some areas whereas Georgia does not.Different parts of the country are subject to Earthquakes,fires,floods,Tornadoes,etc.Saturation of the product you will be buying for that area and the amount of foreclosures or short sales in that area for multifamily can bring the average rents down affecting your occupancy and ability to meet debt service.Also do not COUNT on those equity funds UNTIL you have been approved.I have seen this before where a buyer has say 100,000 cash but then they think they can pull out another 100,000 from equity in properties they own.The appraisal comes back lower than they thought and they get only 60,000.Now the 40,000 has to be borrowed from someone else or you do a seller second if the first lender allows it.The key is to have the money liquid to perform when you find the right deal.

If something was to happen to the structures on these lots (like a fire, earthquake, ect) it would not be possible to rebuild due to regulations under the Shoreline Management Act.

A tidal surge is a Flood hazard, but the cause of that potential tsunami is an Earthquake hazard.  

Skiing in the Alps, hiking Machu Picchu and building orphanages in Haiti, while my real estate and other investments cash flow more money a month than your entire salary" might not go over that well in the interview!

In Cal, after the 94 Northridge quake, fema did low interest disaster loans/grants for anyone who needed so everyone got properties back in shape regardless if they had earthquake insurance or not.

CA is prone to earthquakes, that's why some cities oversize support system here.

Standard markets generally offer better coverage at lower rates and are more uniform than excess lines coverage that can include exclusions on thing like earthquake coverage. 

Earthquakes, fires, landslides, monsoons...I believe those are the 4 seasons of California.