So if you have a cap rate of 10 to 12, then you are making about 10-12% on your cash purchase price.If you do have a loan, then if your loan interest rate and associated annualized costs (APR) is below your cap rate, then your actual return goes up.In practice, cap rates on deals in San Diego are from 4 to 9 percent depending on the area.

Look below this Window, and you will see a list of names of people that have posted in this thread.

Filter people over to your site from doing offline and online ads to get the people covert into leads. 

The main obstacle is that the lot is  nearly 20' below the floodplain and would require some significant stilts.

Some 1%, more 1.5% almost none below 1%.  

I have run the numbers and this is what I am getting for the items listed below.  

Gravel parking lot.  

If there is room in the budget for a porch I think its an excellent idea but even a small, nice perched awning would add a really nice accent and make the front much more 3D(see attached image below)

Based on this and below information, I was thinking about making an offer of $80,000. 

As long as I end up with a property that is structurally better and younger (capex) than most comps and I stay below 75% LTV with good cashflow I think it's a solid deal.