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What is the best way for me to acquire properties with no money down?
There are many properties for sale in the metro Detroit area where I'm located.

I'm interested in turn key properties and not fixer uppers (painting and carpet is fine, and minor repairs I can deal with) no major fixes though.

My goal would be to acquire control of properties and rent these properties and produce an income after my expenses.
This would be the price area:
$50,000 per home single fam. residential 2-3 Bed bungalo, rent for $700-850/month. (brick home prefered)
Most likely I'd have water in my name, taxes could range from 900-2500 depending on property.
City of Detroit taxes are very high, and they include $300 for garbage removal, since the city is broke. Taxes can seriously cut into profit potential here.

I could hire property mgt. for about 10%, would this be a good idea?
I've heard if you can't manage the property yourself, don't buy the property.

Would Land Contract or Lease Option be my only alternatives?
Would Lease option be better to see if the property would work for me and be less risk?
Maybe I could Lease option for a year to see if the property is worth purchaseing.

thank you!

Another problem with being highly leveraged or rental properties alltogether is getting paid on time at the 1st of the month.

I can undertand problem tenants, but what about this economy and little to no jobs and high unemployment? what do you do?

If your tenants work in factories that move to mexico, who's going to replace these folks.

We are seeing 1970's style economy and they weren't outsourced then, Now the plants are moveing to mexico with no sign of recovery?

Very good point All Cash!

Most people, books, seminars etc. teach about how great Credit is, and I'm more of the cash and carry type myself.

I know investors who have a very hard time collecting rent, and now they all want section 8 so they can get paid.

This is a dangerous scenerio to myself:
An investor buys multiple properities, then takes out the equity, refi's etc. these properties to the top, or darn close to it.
Then plans on the tenants to pay for this with their rents,
Ok this will work, the only problem is tenants do not pay on time or they stop paying rent and have to be evicted.
This is why the investors want section 8, yet I hear sec. 8 is tightening up their funding, or already has.

Then there are people that move from one place to another and stiff the landlord then move on, these people know how to use the system to their advantage and moveing around and stiffing landlords has become a way of life.

Thanks Ryan, sorry about that!

Thanks again Roy for your comments, very insightful. I'm guessing also that there are tax advantages to the second example you gave involveing leverage. Obviosly being highly leveraged is a quicker way to accumulate wealth, an investor would have to be comfortable with the route of financeing they take.

Would you stick with single family residential over multi family units?

Thanks for your response! That definately makes sense.

AVR is speculative (even w/ recent comps) and actually from reading these posts and working in the market I'm at, an AVR estimate is quite scary.

What I find to be the truth is that Real Estate is a commodity.
Also it's cyclical, when the Supply is greater, or much greater than the Demand somerthing has got to give.

These are very interesting times, with the lack of wages going up, how can rent increase in the short/long term?

I'm sorry for my poor typeing/spelling. Thanks for your responses!

After makeing enough deals where an investor has a substantial sum to utilize, how many pay off all REI Debts and go on a Cash and Carry type of investing. pay cash/no debt invetming?