I'm not sure about the SD market, but I'm in Sacramento, and focused more on creative and seller finance deals that cash flow.

At that point the buyer was so Leary of the numbers they backed out, then the seller didn't want to give back escrow.  

i did not know the seller!

So, if interest rates are a buyer’s primary roadblock, then I recommend negotiating a rate buydown at a seller’s expense or looking at new construction, where builders are offering rate reductions and other substantial incentives.What if I’m a seller?

That is if purchasing EXISTING performing investment real estate AND have very good clarity of every facet of the transaction ESPECIALLY reasoning for seller selling, AND you have decent market intelligence. 

This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

A short sale might be an option if the seller’s lender agrees to take less than what’s owed.

Specifically, I’d appreciate:•Wholesale contracts: Recommendations for templates or tips on using contracts effectively with sellers and buyers.

Where you would put in the mortgage the seller is financing.

If interest rates go down the seller gets hosed for life.