For the amount you raise: $1,000,000 loan amount would require a 25% -30% down payment, so for ease, let's call that a $350,000 down payment (roughly a $1.35mm purchase).

My budget is roughly less than 500K  (down up to 40%) and I can take one unit as primary. 

When fixed will rent at roughly 5500 - 6K a month. 

If this note is purchased after 10 years for roughly $7,100, you'll have a 36% yield on your investment.

With the government hopefully not planning to butt in anymore with short-term incentives, with foreclosures expected to be on the decline after a glut of alt-a and option arm defaults, and after what will likely be a rough off-season next winter, I have a feeling things will begin to improve next spring where I am.Also, if interest rates start to trend upwards, a lot of potential buyers will see an opportunity about to slip away and may jump into the fray, which should help all segments of the market.Of course, come next year, I have a feeling commercial real estate is in for a bad surprise...

But after the expense of training them (which is a chunk of money) most of them are going to quit as soon as the going gets rough, saying they aren't paid enough to put up with that stuff.Whatever remained on the force is a scary thought.

I may be seeing why California is such a rough place to do business.

Also, for the owner occupants I don't have the time or money to mail to 14k people so I'll be doing a random subset of roughly 1,000 leads.

So here in the IE, a 250K house is sustainable at CURRENT income and interest rate:Price: 250KDown: 50KLoan: [email protected] = monthly ~926.23If interest rate goes up to say 6%, to get the same monthly payment:Price: 193KDown: 38.6KLoan: 154K@6 = ~923.31That's roughly a 20+% drop in value of the house.

For one, I give a discount, roughly $20 on a $1000 lease, if the rent is paid on the first.