Perhaps they want to reduce their cap gains exposure by carrying a second, or perhaps they had enough equity, it was worth the cash flow on the note.

well due to the whole financial crisis and government takeover of one of our biggest mortgage lenders all the mortgage companies made their lending policies extremely strict and realistically now a buyer needs to have around 20-30% deposit for most lenders. they also generally will not lend more than 2.5 times the amount you earn in a year. then the introduction of hips (home information packs) august 2007 caused a huge flood of houses being put on the market because people wanted to avoid the cost of the hips this meant that values of houses dropped drastically and a hell of a lot of people went into negative equity and in 1 month in particular house prices went down by 9%...in a MONTH!!

To me, numbers are numbers and cap rates of 5% anywhere in the country won't cash flow (excluding buying the cash flow with large down payments of course, which reduces your COC and leverage usage.)

In 2002, only the top 10% of financial planners made more than $108,000 and the average financial planner earned $57,000.

. :) Of course all dollar denominated debt would still be less relative to your earning power.

While paying all cash eliminates a mortgage and increases your cash flow, it also reduces your COC dramatically, and reduces the amount of property you can control.

See real estate will be there for CASH FLOW and for Larger earnings in FLIPPING.

I Called the asset manager and she informed me that they reduced the price to 65.9k...

Mine was reduced by $100k.

Consider, when there are low risk investments earning that amount, for what reason would an investor tie up in a property earning less than that?