., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

.: Any idea how far south the potential for Santa Ana or similar winds goes?  

Very similar to properties in Oregon we've sold and for sale.

Instead of evicting them, i was thinking is there some way that I could rent it back to him for very cheap (mainly to cover just the taxes/ insurance) ie 2k a year rather than the going rate of 2k a month for similar properties.

For similar reasons you mentioned with access to both I70 and I90 pretty easily as well as being in range for the eastern sea board makes it a logistics hub.  

@Joshua RobinsonIt seems like we’re on similar paths!

You can also go on zillow/FB marketplace to see what other similar properties are renting for around where your place is at. 

Wondering about paying through an escrow agent or something similar 

I really want to do an apartment building but i want to build a track record first of smaller deals and just looking for a strategy to get into deals similar to a subto or wrap.whats an agency loan?

Have you or your clients tried similar strategies?