This $66,000+ and the initial $74,000 seems like too much liquid assets to be tied into a single property that probably won't give me much ROI.3.) $4,000 or so to complete foreclosure, 30-120 days.4.)

I did reach out to the agent after I got that initial email and we talked a bit about where I’d have to be at to make the deal happen.

If my math is right you could almost double a properties income potential by adding an Accessory dwelling unit which will probably cost less than 10-20% of the initial home purchase price.Example:SFH purchase: $400,000 renting at around $2,100-2,500 (after about $5,000 updating)Garage Conversion: 25,000-100,000 (maybe less if I can find one with a bathroom next to the garage)1 bedroom renting near Fairfield CA: $1500 monthA lot of these numbers are idealized but this could bring the Property near to the 1% rule.400,000+25,000+5,000 = 430,000(2500+1500)/430,000 = .93%Now if we get this to work and we take it a step further and add a second ADU to the backyard for 100,000-200,000 we could add a 2 bedroom and add more incometotal cost: 430,000 + 150,000 = 580,000rent for 2 bedroom: 2,000Total income: 6,0006,000 / 580,000 = 1.03 %Do these number look relatively reasonable to anyone that has more experience with adding adu's in California?

It's not 100% tax deferral at 10 years- Your INITIAL gain is recognized when you sell or at the end of 2026- and at this point you can receive up to a 10% reduciton in that gain. 

I would have never paused my marketing when my initial deal flow got too big.2.

@Joe Villeneuve love that approach, I think that's what I'll do - use the initial sum for flips and any profits to buy rentals

The details:List: $150,000Down Payment: $30,000/ 20%Closing Costs: $4,500/3% Initial Investment: $34,500No of Units: 2 (Both Currently Occupied)Annual Rent: $20,100ExpensesProperty Taxes: $447.58 mo/ $5,371 yearHomeowners Ins: $59 mo/ $708 yearCapEx: $168/10%Vacancy: $168/10%Total: $842.58Net: $1,675 mo Total Cost (Mortgage plus Op Ex) $1,477.58Cash Flow: $197.42mo/ $2,369.04 YearCoCRoi: $2,369.04/$34,000= 7% That’s what I have for evaluating a property with what I know.

One of the two is a HUD home that is in the initial offering phase.

I even asked what would happen if the rents catastrophically dropped 50%, she said they would still supplement the rent if it is below the rent range they initially provided b/c they ultimately want to satisfy their customers. 

Initially applied for financing thru BofA which offered 4.75% on a 30 yr fixed working with a loan officer I had previous experience with.