That versus buying all cash. 

@Mark Masiel  My interest rate is so low that over time I will make more money with that $4800 if I use it to invest versus, paying it off just to avoid the small interest fees. 

I did not realize that the solo 401K had different rules on lending to yourself versus the self directed SEP/IRA.

Banks have wised up, and now recognize that they take far smaller losses on SS's versus foreclosures, so they're now trying to improve and streamline their SS processes.

That said, its allowing you to get about $400 a month (guessing that taxes and insurance are running you about 200/mo) on your 20k investment.But, if that is the case, then the two things you'd be missing out in that equation are:1) Appreciation - I'm not saying to invest for appreciation but what are you really going to get if a 20k house goes up 3% versus a 100k house going up 3%?

Will Barnard What's you take on flipping condos versus single family homes?

I can't see someone dropping 60,000 down to pay a high interest rate.The buyer would just work on credit to get a regular loan.Just from what you have posted it sounds like you need to just get out of it now while you have options instead of "kicking the can down the road".As mentioned the note buyers will be very conservative on a non-seasoned note and a quick sale value.The note buyer has to analyze length of foreclosure and costs and BK filing potential.Another factor is interest rates are low.You hold the note for 2 years and values uptick slightly but interest rates rise so it's a wash or negative affect at best versus selling today.You and your partner mentioned you do not want more flips so it makes sense even if you break even to get out of it today with a regular sale and go back to what made your partner the most money.If you have had it listed for 5 months it sounds like you have a crappy broker/agent.After the first week on the market you should be reducing by small amounts each week until you hit the sweet spot and sell it.If you priced too high in the beginning for resale,paid too much on acquisition price before rehab,etc. the broker/agent should have not allowed you to list so high in the beginning.

I would think many on this site would like to measure the percentage of their net income that is contributed by passive income versus income that requires their direct involvement.

Jerry: Guitar lessons versus RE wholesaling lessons is a great example of the differences in education costs.

Reason someone would over pay is the owner financing and their ability to not get financing at that time.I'm using the 50% rule and your 20% down... financing 50k @ 8%.The balloon would help you around the overpaying some and give you a chance to get your LTV down a bit, but you'll still have to bring even more cash to the closing to refi...You still have the lousy CoC which may only get worse when you refi (you'd have to look at the extra cash flow from the lower payments versus the additional monies you'd have to invest to see).