They heard half of something from someone without validating on their own.You could be 100% correct but would benefit others from CA on here if you can post the code.

Have you done any additional research into it's validity?

This falls somewhere between the '2% rule' and '1% rule' mentioned above and for your area may be a valid starting criteria.

But to be safe 10% is a good starting point.One important thing is to get extended warranty on appliances, they often take a beating and can be high priced items to repair or replace.  

(This is what I use in California) The concept is to keep the fact that the property has been transferred private.The sales transaction remains unrecorded i.e. the deed is not recorded or the contract of sale or the financing agreement.The transaction is maintained in the records of a settlement /escrow management companyEnough documentation is recorded to protect the seller and buyer in the chain of title without making the fact that the property was transferred public record Existing loans, taxes, insurance are paid by the buyer into a collection account, which in turn pays all the accounts required to service the propertyRecording a deed or contract is not required in most states to make a valid transferNot disclosing the new sale to the underlying lender is not illegal in most statesKeeping the transfer from the lender is not a crime or against the law.

Another idea I have used is to offer to sell the property with a home warranty, insurance on the appliances and mechanics, paid for 1 year.

The lot I am interested in is "landlocked" and has no proper 'frontage' to a county maintained road/ingress/egress.The Warranty Deed on file with the county does indicate an easement of 15' width to/from the county road, but the county requires a 20' width easement to be considered legal access, therefore the person I spoke with at the county zoning division/land development division believed that the lot was an 'illegal subdivision' and therefore was un-permittable for future build.

It will take couple days to setup, validate, and receive the payment.

Not because I see dollar signs (which I do, of course), but that you just validated my gut feeling plan and vision.You also hit the nail on the head regarding my reasons for refinancing my primary and paying off the rental..it is because of debt to income at this point.Other advantages I believe I have here in San Diego is that there will always be a high number of potential renters due to the Navy and Marine Corps bases nearby, and to say I'm networked into that community would be an understatement.

The interesting part is that there is no lis pendens for this mortgage and it is from 2005 and the property was sold with a warranty deed in 2007.