There is a chance that this is a pure bluff (There are companies out there that work on the behalf of carriers that simply call on these leases and get commissions based on any rental reductions). 

(annualized) cash flow+tax benefit+appreciation+principal reduction/total investment. 

, there should be a staggering price reduction if the seller is requiring you to use crummy financing.

One of my best contacts told me that an REO listed for 180,000 sold for all cash, 225,000.On top of that, the banks are actually fixing many of the homes up to "move in" status, so an owner occupied buyer is moving in.What this will do in the long run is back up inventory, create a false price appreciation, thus causing a glut and price reduction just to turn RP assets into Cash assets.California investing is going to take patience in 2009 and 2010.

As far as us presenting out thoughts on the fair offer we were thinking of making, which was very reasonable and based solely on actual MLE cost, he was less than amicable and flat out declined to comment further after stating that the property cashflows and that’s that.To each his own, I figured it best to move on.The property has been on the market for close to 3 months now with recent $20K price reduction and to his defense, it might be that he is frustrated at this point that no one is buying and hates the idea of having to go lower.As some say, he may also have been trying to look out for me, just sad that it needed to come out the way it did.He probably is very aware of the structural issues and perhaps thinks that a male buyer would be more inclined to buy and flip the property, I don't know? 

You would need a price reduction and some fantastic seller terms on the note.Ask yourself, Why is he selling?

While I can't say, as a matter of fact, why this is the case; I can only assume that this is a result of a decrease in home ownership leading to additional renters, with the increased competition in the market accounting for any reduction to market rent from other factors.So, while a great deal of OOS investors were worried about whether they'd be able to keep their unit occupied; many of my clients and friends were chomping at the bit for leases to end so they could turn their units over and capitilize on the increased applicant pool.The property is West of I-5, less than a half mile from Mission Bay, and maybe a mile and a half from the beach.

At the very least a little bleach is cheaper than 5 years worth of sinus pills.

If it's budgeted and the funds are there, things like this won't be such a huge pill to swallow.Best of luck to you!

You know what the pill looks like.