This could be an alimony that is court ordered, which in that case my past renters were able to provide documentation with full details regarding start and ending dates, rate of payments (monthly/bi-weekly), and amounts awarded.

Then the test is a bear in Cali, only 12% pass rate...harder than Bar Exam.

Some hard money lenders may offer better leverage but the interest rate and origination fees will be higher.  

The rates are not that much higher maybe 1-2%.

@Ashley Ernstjust curious, are you truly buying it at such a discount that you don't need to do any improvements and you're hoping for a higher valuation? 

@Scott Vaethif your mortgage rate is reasonable i would definitely not use extra cash to pay it down.but give us more info if you want better advice.for example - purchase price, rehab amount, rough new ARV? 

If it were me, I wouldn't sell at the discount.  

It is not as cookie cutter as 1-4 conventional and FHA rates.

Rents do go up over time (as do costs, but hopefully at a lower rate). 

The FED is not reducing rates (maybe 1-2 times in the fall) but it's going to be 0.25%.That changes nothing.