My real issue isnt the price but the CoC return, if I add another 15k to the deal (over appraised value) my CoC is better suited to stay in the securities market for now.

@Tad FisherIt's funny, because I almost moved to LA to invest in RE, and only stayed in Toronto because of an accident, but started investing here instead.

@Timothy Mackinny You made an absolute very valid point and I got lower rate than this one who I want to deal with at moment but I didn't feel comfortable dealing with them. however the busy builder has no time for my lower cost projects.

If it's based on inflated market values and the sponsor has no cash equity at stake, you should stay away.The other problem is that in a down market, the loss severities can be substantial.  

However, if you are not comfortable using leverage then use all of your cash to buy the property.  

Object was to get long term tenants with reasons to stay put - - this worked for me. 

Just ensure you did your arv numbers right and stay on budget (ensure you have a contingency or buffer in Reno costs).

If you give no notice and he hasn't either than I'd assume he's staying.

But not sure of their exact financial situation, because they didn't feel comfortable sharing any more details than what I have.

Very comfortable at the moment so I don't NEED to rush into a bad deal.