As long as there's a valid reason to do so and the goal is not for decreasing of tax payments.  

CA has 15.15% payroll taxes/insurances (all government collected) if you are just starting, the maximum value this could decrease to something like 12.5% or so if you have good record and volume.

In my area, we have not really seen a decrease in rural land prices in at least 35 years.

I think there is good opportunity in the South Bay for Estate type sales where a trustee is looking to unload a decreased parents SFR quickly so that the estate can be settled.

I'm concerned about the decreased demand this time of year leading to extended vacancy.  

A class properties can help decrease maintenance and may rent faster, but the returns are going to be lower.  

Ahhh nice job being honest and transparent, @Michael King You may want to use "reluctant buyer" and "appeal to a higher authority".And use "I'm not sure this idea makes sense, and I'd have to have my business partner look over the numbers (appeal to a higher authority) but WHAT IF I could give you a payment for a period of time, this payment would cover and part of that payment would be decreased from the purchase price in the future.You did not ask the existing financing question, if the property is free and clear, you could position yourself to an installment sale, offer more than the seller wants but your terms of note structure and your payment amount.I'm happy to talk to you about the negotiation.Remember, older people want to leave a legacy, and they think about death.And I have a thread about this here.http://www.biggerpockets.com/forums/83/topics/1670...

@Mike D'Arrigo My rent sources are as follows:Rentometer: Median for a 4 bed is 1100CL: 3 beds around the area go for 700-800.Seller's agent says this house rents between 900-1000.I went with $800 as a conservative number, but the plan here would be to start at 1000 and start slowly decreasing the rent if there's no interest at that price.

It's a 4plex with one unit being a 4 bedroom, 3 bathroom unit (Very large overall).We would be renting a combo of per room, and maybe offer two to a room for a decreased rate.

According to Nationwide, a value of 100 for the LIHHM suggests a healthy housing market, and the likelihood of a downturn decreases the higher the value climbs above 100.