The rate is 1% for the first 200K in value, 2% on amounts in excess of 200K.If the property is non-residential or mixed use, you will pay the federal Goods and Services Tax (GST) on that portion of the property's value which is is not residential.  

Neither are my fault, but nonetheless - you are correct.Luckily for me, the property is worth more than 60k so I'm not terribly concerned about losing money on the investment at this time...

I didn't lose any tenants and it makes a BIG difference getting the additional revenue. 

Keep in mind Debt service needs to be filled in meaning based off my calculations they lose money every year. 

If those expire, the property will lose some value as entitlement work has to start over and entire project could change as a result of CIty and Costal Commission.Bob Faulis

I always lose at gambling.Frank

Even if you end up in court and lose, the loss will typically be covered by insurance.

Finally I learned more about it and realized that it's just a lack of education.So to answer your question, if you are in an area that really doesn't allow for cash flow, my assumption is usually one of two things: 1. the owner bought the property decades ago when it was cheaper (whether they meant to or not or even knew what they were doing), or 2. they are losing money at a decent speed.Although, with all of that said, the 1 and 2% rules are much harder to come by these days than they were even 2 or so years ago. 2% is pretty much out of the question unless you buy in the ghetto, but 1% is still decently doable in a lot of markets.

***My question is where do I start with trying to find a good price to throw at him so that we can purchase the property so my Mother-In-Law won't lose their current church location while the new church is being built????

I know hard money can be expensive ( pts, 8%-12% plus every fee they can stick in the agreement ) but the expense deposit appears to be excessive to to get started.I appreciate all feedback