@Daniel BryanI agree with JacobBetter returns elsewhere and downside is if your borrower defaults depending on the state it could take years to foreclose and run all that legal and holding costs which wipe out any gains.

This substantial increase offers more choices for buyers, fostering a competitive market.Months Supply of Inventory: The supply of inventory nearly doubled, jumping by 97.2%, from 3.6 months to 7.1 months.

The juice may not be worth the squeeze to save money.A good agent will be worth the cost you might spend, but you can also work with a good wholesaler as well.I would recommend that if you work with a real estate agent, treat him/her as a teammate and not a tool in a toolbox or someone disposable.

See attached Excel summary sheet.Investment Highlight89% Physically OccupiedSupply Index in a 3-mile radius of 6.8 SF/Capita, 5-mile radius of 7.7 SF/Capita, and 10-mile radius of 8.3 SF/CapitaAdditional Income generated from 4 mobile home lots and 1 mobile home (Not Verified, as thus not included in underwriting assumptions)Key Underwriting AssumptionsDown Payment 25% of Purchase PriceEstimating a CAPEX/Repairs cost of $150,000Estimating Operating Reserves of $10000Stabilized Vacancy and Concessions/loss to lease at 10%Using a cap rate of 7.23%Key Demographic DataTotal Square Footage 21,130 Supply Index: 6.3Population 3,338 1 Yr.

Also, any idea on what the monthly cost for renters insurance? 

California offers equity building, potential appreciation, and stability, but high entry costs and market volatility are downsides.

Always gotta be studying the market, studying your competitors, and improving your homes to exceed the rapidly increasing competition.

This substantial increase offers more choices for buyers, promoting a competitive market.Months Supply of Inventory: The supply of inventory jumped by 132.4%, from 3.4 months to 7.9 months.

This substantial increase offers more choices for buyers, promoting a competitive market.Months Supply of Inventory: The supply of inventory jumped by 78%, from 5 months to 8.9 months.

Also, would y'all agree with my realtor that a new construction home is a viable path forward, considering the competitiveness of the local market?