If you really want this property you risk giving up on your investor status and turning into a home buyer.Bottom line it should not matter whether you get this property or not but if you do it must be on terms you are happy with. 

An investor is risking a lot of money and the only pay day comes at the very end once sold (in the flip model).That said, I do agree that a strong relationship with trust is essential to both successes.

all inclusive Deed of trust  ( IE wrap would be the most protection for the buyer and you) only risk is ocwen calls loan on the alienation but they are so goofed up these days I don't see that happening in a year.. but that would affect your credit.other wise lease option to purchase  250k is the lease option payment to you.. you don't give them title if they cant purchase then you have the house.the wrap puts them into title and will allow a refi with one year seasoning that is why that works so well.must be a great place at 1 mil in redding  !!!!

As long as the property value go up, and you can maintain positive cashflow, you are okay.Overall, higher risk, and you will need an exit strategy when market values go south.Terry

I can see 10%, meaning that if the property really is only worth $55k then maybe the seller's risk lets it out at $60-65k, max. 

Multiple properties spreads out your risk.

I have not typically seen banks issue out lines of credit to new land lords because of the risks involved, especially at low rates. 

DR and Lennar basically will only buy ready to build lots.. so I have a few larger projects in the works.. 92 lots and 164 lots.. that they swear ( pinky Swear) they will buy from me when I get them shovel ready.. 7 to 10 million dollar risk and they could say no if they don't like what the market is doing.. the 92 I am going to do if they don't buy it I will build it.. the 164 I have to flip or I will not exercise my option at walk away from about 250k in cash I Have in it presently.. but that's the land game .. big risk big reward.. if the 164 goes right I will make about 4 million on  the same 250k invested.. roll the dice right ???  

Sounds like a big mess.What one of my mentors has taught me that owns 6 million sq ft of retail property and in the business for 40 years is what is the risk and what is the upside?

Yes many people I think can hit those numbers, butthe flip side is many of them put a lot of time into this RE thing and others are taking on risks to do so (some good risks some not so good).