Yes, you can assess a value from the annuity income by assigning a market rate for similar investments, but that is not reaching a market value of a real estate note.

You could argue that because inflation is greater than the return you get on a savings account, my 100,000 is worth less and less every year.So I don't need cash flow, and as things stand now with my TSP (Government equivalent of 401k) and annuity, I should have a cash flow when I retire that will be adequate.  

Learn about imputed interest which is minimum interest  Learn about reverse mortgages compared with installment sales , A good source is AARP  Learn about annuities and compare them with installment sales  Use the term legacy, leaving a legacy of your children or church or a charity "The cash flow survives your death  Mr. seller meaning that your gift can be inherited by someone that you care about or some institution you care about" If the seller is gainfully employed with W-2 income, and it's a free and clear house, you can have them get a 50% mortgage, then buy the house subject to existing financing, take over the payments, and give them a single payment note for their equity There are between 34 to 40% of all houses that are free and  clear of mortgages.

I wonder if ARM commissions are like variable annuity commissions in the insurance world?

., variable rate annuities.

Same with an annuity.

Approach it lightly and kinda ask if she would rather have an 'annuity' vs a pile of cash.My grandma would not be my first seller carry.  

However, in residential properties the are not terribly common.The first step is to find the correct vendor:they need to own the property free and clear;they do need immediate access to their capital;they are interested in turning their property into an annuity and earning extra interest income and/or they are interested in deferring capital gain (if not a primary residence) over a period of up to five yearsIf you are buying from Dick or Jane Homeowner, you will most likely need to educate them on how a vendor carry works.  

My goal is to essentially build an annuity and slowly piece together a portfolio with stable cashflow.  

And someone else talks about annuities or trusts or something.