Purchase price: $1,090,000 Cash invested: $218,000 Quadruplex in the historic district of downtown San Luis Obispo.

@Crystal A. that is such a beatiful & historic house!

A prepayment penalty is only triggered when the loan is prepaid and if they're keeping the property in this historically low interest rate environment, the prepay only ensures the lender they're going to get a decent return on their investment in the event of refinance or sale.Some folks don't qualify to get a loan backed by Fannie/Freddie. 

The government is getting rid of the heavily subsidized Prefered Risk Policies (PRP) these are policies that were issued in X, X500, B or C flood zones, and the government historically has heavily subsidized these policies making the premium more favorable for the smart few that bought these policies.

Or will they stay near this historic low?

Know before you buy.Insurance Premium Quote: Get one.Utilities: Get the full historically, and ID any upside by installing energy efficient fixtures, etc (LED lights, low flow appliances/fixtures, etc)R&M / Future Capex: Get a PCA inspection done to idea any future capex / deferred maintenance and get on it.

Take the taxable hit now (when taxes are at historic lows) and put it into RE.

You made $160K from the value add which is basically little different in effort from the Ohio value add.The historical appreciation: Case Shiller has San Diego as the number 3 highest return market in the US for this century. 

The home is a historic southern diary farm.

I put mini-splits into historic homes where there is not a way to put in ductwork due to the 100 year old construction methods.