Also check the fire departments ISO rating.

I was wiped out as second lien holder which got me to thinking about legitimetly becoming a private lender.My question is if I already make 7.5% off a few of my 250k condos, then how does private lenders (not hard money lenders) make money off charging 7-8% returns when they can just purchase condos in cash for the same CAP rate?

Calculate your gain after selling costs times 15% plus the California rate.

Crime rates per capita here are pretty exaggerated as a huge chunk of crimes are committed by folks from out of town. 

Or you could find a group with a 30 year fixed (or Adjustable Rate) with reduced or removed Prepayment Penalty, but they will usually charge extra points or a higher rate to do it.Not 100% sure on the strategy behind it, but would be happy to connect and talk through either.Good luck!

Also, insurance rates have been jumping higher recently.

It's nice to see that a family friend that's a lender mentioned shopping around for rates so that you can find the best deal possible, even if that means not working with them.

There are other suburbs that you may be able to do it in but its not going to have the booking rate you're looking for.

New construction offers a unique blend of potential high returns and control over the investment, making it an attractive option for those looking to diversify their portfolios.The Advantages of New Construction InvestmentCustomization and Control: New construction projects offer investors the chance to tailor properties to meet current market demands, ensuring higher occupancy rates and returns.Energy Efficiency and Sustainability: Modern constructions come with the latest in energy-saving technologies and sustainable materials, appealing to a growing eco-conscious tenant base.Lower Maintenance Costs: With everything brand new, the initial years following a new construction project see significantly lower maintenance costs compared to older properties.Tax Incentives: Many regions offer tax benefits for new construction projects, especially those that meet certain environmental or economic development criteria.How to Approach New Construction InvestmentEmulating Buffett's investment strategy involves careful market research, understanding local real estate dynamics, and potentially partnering with experienced developers.

You can also watch this stream I did for BP a few years back that might be helpful: Just know that it's harder these days with interest rates at where they are.