After a few months and a lot of searching, I found a property in the San Fernando valley (Van Nuys) thats move-in ready and my offer was accepted at 60k below asking.

Exactly, making sure that you are working with a reputable turnkey company that does good work on the rehabs with no deferred maintenance, has excellent PM and provides properties at or below market price that cash flow.  

I am a little confused when you talk about the properties being "purpose built", you you are looking for properties below replacement costs.  

Below are some questions about redemption, can you help with the below.1.

I am looking for some guidance in regards to the situation below.

And so the bank wont give away the house below that number?

The details are below.

My filters are no minimum, no maximum, 6 months sold, and 1.5 miles. 

I plan to make a cash offer with my POF for just $5k below asking and assign the contract to my friend for the $5k.

Without a mortgage I could comfortably live on 1500/month and that includes having money for an annual sell-off vacation in the off-season to costa rica...Anyway, at 8% return I could RETIRE permanently on a little over 300k...However, that is in London, ON with a population below 500, 000 people (I think north of 400k?).