evolusd, I agree with PG. It is very possible they sold a property for a huge profit in 2005-2006 and this put it all down on this one. If there is a purchase money trust deed on file dated 2006, it may only be for <=$250K. In addition, they could have recent refied it to a much lower interest rate, making your $2400 rent a positive cash flow for them. They could have also gotten the taxes lowered to reflect the new $400K value.
If there is no purchase money trust deed dated 2006, they paid cash for the property. If the deed conveying the property to them in 2006 was a quitclaim deed, the property was given to them by family members.
This is all easily checkable before you sign a lease with them if you are concerned about being evicted after a "strategic default." At this point in time, I think this is a legitimate concern, esp. since they claim to have just purchased (or are about to purchase) new construction to live in.
You need to do more research at the county recorder's office to "flesh out" your "property profile." It is located at the County Administration Center at 1600 Pacific Hwy, first door on the left of the north-end of the bldg. The first two rows of parking by the door painted green are free for two hours for county customers. Get the document numbers you want to look at on ARCC online and then go and look at those documents in their computers. Take notes and get the details of their new purchase as well, if recorded. This shouldn't take you more than an hour. If you don't know how to obtain the documents from their computers, show an employee your ARCC printouts and they will help you.
Remember to never assume anything and nothing is ever as it appears to be. Forget about the owners' young age. This doesn't matter.
