I would imagine base case is a commission only arrangement, if possible.Thanks for any input.

Often times, Sponsor target the IRR (as opposed to equity multiple) because the promote is based off the IRR (not the equity multiple).

Based on that demand the closing agent would give him $30k, reconvey his loan and record a new trust deed/mortgage in favor of the new lender for $80k. 

It anchors them to a certain position and they reference offers based on that number instead of the reality of the sale, to everyone's detriment most of the time.

AS @SeanSnider said, look to your network of family and co-workers and friends and BP for funding, but if you want maximum leverage - and of course if the deal pencils out - seriously look at hard money of Non-prime loans which will let you buy another rental based on its potential cash-flow and value and all you need to come up with is 20-30% of the price plus closing costs. 

I’m not too concerned about them being local to me, just that they are CA-based.

It sounds like it would appeal based on location and that there are hotels nearby as well as other towns.

It needs some renovation, is currently worth about $215,000 as it sits and about $285,000 after $40k of renovation based on comps.

The first thing that occurred to me is the HCAD estimate, which splits its property tax base value into both land value and improvement value.That said, I've heard that HCAD property tax valuations can differ from going market rates for a lot of reasons.

The property is a 5 unit building with the following information: Rental income is $4,000 per month or $48,000 per year totalTaxes are $375 per month or $4,500 per year (this is higher than current but factoring in that they will increase)Estimated insurance is $200 per month or $2,400 per yearExpenses: Vacancy 8%Management 10%Other expenses Landlord pays water at $400 per month or $4,800 per year Realize this could be a cost savings in the future, but want to analyze as isGeneral maintenance (including minor repairs on property) including grass and pest control estimate at $300 per month or $3,600 per yearCapital reserves for Cap ex (appliances, windows (52 windows on building), roof, siding, etc. which I based on building a capitalization table based on useful life of items and number of units) at $460 per month or $5,520 per yearLoan: All in after down payment the loan would be for $300,000Assuming 7% interest rateAmortized over 20 yearsThus comes out to $2,325 per month or $27,900 per yearSummary Income Per Year:$48,000Property Exp.