If the property is only slightly upside down, like in your example, and the area isn’t drastically depreciating, like Inland Empire, California, then the existing financing is the attractive part of the deal.

Costa Mesa is a good area and there will be lots of investors interested if you are offering financing.I personally would sell it and 1031 into a few houses out in the inland empire.

I am not looking to build an empire over night.

All the best to you in your empire-building adventures!

Slowly through baby steps we have built our empire out of single family homes.You might enjoy podcast 103 where we had the opportunity to talk about our business model. 

Best company in San Antonio is Libertry Property management, tell him Steve Rozenberg from Empire in Houston sent you, Kevin Knight is the owner and very good guy.

There's always the High Dessert, Inland Empire and Palm Dale/Lancaster.

You see a lot of this in the present day securities market, instead of using the empirical, black&white data to determine and estimate realistic ROI figures.

I would worry about it when you have a rental property empire.

My real estate empire is far more profitable than my photography :mrgreen: