Noob with questions

[Benjamin Molina]

Greetings BiggerPockets! I am brand new to this site and to Real Estate investing in general and I'm hitting the ground running. I'm really just focusing on educating myself right now with the goal of purchasing rental income property within 2 years. I live in the Sacramento area so naturally I've been analyzing property close to me. I had my mind blown this weekend on a sale that happened. Perhaps someone could shed some light for me. There's PLENTY I don't know but this really took me by surprise. I analyzed a 4-plex in midtown Sacramento that was family owned and they were asking $575K. Looking at area rent and the property itself (built in 1880) I figured $495K was the max I could offer and still cashflow (putting 30% down and financing the balance 30 years at 3.5%). I checked up on it this weekend and apparently it sold for $658K(!?!) What am I missing? The only thing I can figure is an all-cash purchase? How could anyone make money on that deal? 

[Jeannie Kenes]

If it appraises for $575K then it would have to have been an all cash deal.  They would never get a loan for $658K.  Possibly they are confident prices will go up and they will make money in the long run.  Whoever it is, is either much more gutsy or crazy than I would be.