If they can operate the business better than my property management company and have lower vacancies and repair costs, they may make even more than $110K profit - good luck to them. :)I'm not looking at REITs etc because 1) I like to have more control over my investments, 2) I can't leverage to the same degree, and 3) they generally have much lower ROIs.If anybody understands what I'm describing and knows if I'm using the appropriate terminology and can provide any advice, I'd be most grateful.

The higher the desirability of a property the lower the cap rate.

And that is putting the place out for a lower price than everything else.

So, thanks to the falling we're seeing now, house prices in real terms will be lower than they are now.Now, because there are short term fluctuations, the prices might actually be up or down exactly 20 years from now.Nominal prices will likely be higher.

You could also contact your local real estate investment club (see the resource link at the lower left side of the BP page) and ask around for who the successful investors use.

Some foreclosed people in my area are looking for a rent to own deal to jump into with lower payments than they were previously paying.

People who live in high priced areas are going to have to do a little driving and find the bread and butter neighborhoods, with the lower house values.

A lot of people don't like options and will tell you all the reasons they are worrisome and you shouldn't use them... but for those that understand them, they lower risk and increase the number of deals they do.

That will often get you the deal, even if your offer is at a lower price than another offer, especially when you're dealing with REOs.

Even if you buy it at a lower price, the rent is likely to end up much higher than their payments because a landlord has to explicitly deal with costs like maintenance an owner glosses over, and wants a profit.