He doesn't want to deal with it and will carry the note to me for $200k (its worth $250-275).

It might also be worth leaving a note on the front door in case they come around.Last note, if they say they aren't interested in selling just make sure they keep your name and number in mind for whenever they change their mind.

@Daniel DietzYour analysis is in the right direction, but not quite there.1) Determine the debt financing ratio - in this case .602) 60% of the gross income is then looked at by UDFI3) 60% of all deductible expenses are applied, so 60% of straight-line depreciation, 60% of the interest on the note, 60% of property taxes, etc.4) $1000 exemption applies5) The net amount after deductions and exemptions is then taxable to the IRA, and the trust tax table is used to determine the tax amount.Even if you have a negative UDFI liability, it can be worth filing the 990-T in case you can carry that loss forward to future years.We have a UDFI calculator on our website and if you PM me, I can send a link to you (BP does not want me posting that outside content on their forums).

But it takes time and is well worth it.Good luck.

I was looking to by some land in San Diego, California to do this myself just not so big but to know that i can make a large profit from it is completely worth digging in a little more.

It may be worth it to talk with the tenants and find out if there is something that could be worked out to keep them to stay if you didn't have any concerns with them while also adhering to your rules.  

Any suggestion how I could dispute the appraised value and is it worth a try?

At the time of my original viewing, the owner was having an appraisal done.

This unit i'm looking at does have an amazing view of the marina and ocean.  

Know what the property is worth and what it will bring at foreclosure. 3.