Prices rise and fall.

I use an option contract this way I get a fee as option consideration which is nonrefundable.Assuming that the seller can deliver clear in merchantable title to the end buyer then I can very easily deposit that option consideration and do with it what I wish.On the other hand, if you are not in a position to fund the and purchase the property then I would absolutely not recommend paying for title or any fees for that matter because you don’t know if you’re able to sell the property yet right?

Thank you for all your consideration and help!

Cap rate should be 10 or better in this area.I totally agree about economic/demographic considerations.

One thing nobody mentions is that in 15 years the CF goes up considerably.

The podcast on HML was great, I think this type of loan definitely needs careful consideration but I have my eye on a flip that would be an ideal candidate for a HML (low cost property in need of rehab, great in demand desirable area, high resale potential ), now just to find a local lender or other short term financing...

Is there any room for a consideration payment to the seller?

Listen to the podcast carefully, those aren't the numbers, nor were those the only issues when you take the whole thing into consideration, there are a lot of elements there.

Real estate is a hard asset where they are only making so much land.With real estate you get the 4 pillars or return.( depreciation, cash flow (hopefully) , appreciation (hopefully), and principal pay down ( if you have a loan and are not paying all cash ).Your tax equivalent yield can rise in the double digits on return.

Originally posted by @Steve Babiak: Not a CA person so just putting ideas out for consideration.