Interest rate, I am going to use 5%.This is my quick analysis:Rent Income: $80,533.57Expenses (50%): -$40,266.59DSYR: -$26,400Cash Flow: $13,866.59CoC: 11%*Note: This did not include closing costs, an increase in the reserves or taxes which I do not believe were on there. 

Could be seller finances with no payment for a year, or you may be offering to buy the note from bank, and anything in between.

This will be my first owner financed sale in California.The main goals: Control and protection, Ensuring that in the event of foreclosure the process is quick and non-judicial.Anyone who has carried back a note in this state who can share their insights would be much appreciated. 

We have the numbers worked out and he was going to do a seller note and hold a mortgage.

Would I be doing a owner financing addendum/promissory note and a purchase and sale agreement?

Note you cannot purchase title insurance on these properties until you pay for a clear title action which will cost you around 3k for an attorney to complete over a few months.

(Also harder)Typically the best way this works is let’s say the bank funds 75 percent, you put 15 percent down and seller holds second note for 10 percent.

@Ken Power 1) I wouldn't advertise on a public forum as to how much money you make2) while you're building up your credit in the US, you can make some money via direct lending or via notes.

So, while I'd like to go see both properties and potentially make offers on 1 or both (Note: we have the cash to purchase the REO and do repairs, though we would be interested in trying to get a loan for the rehab - I hear people talk about FHA 203k maybe?)

I looked online and found the property on one of the realtor sites and noted that the price was too high and it had been on the market for almost a year.