As an economics graduate simple supply and demand tells us they should slowly liquidate just as banks have been doing with some of the foreclosures since the 'crash'.

I'm young, good salary income & potential, am not risk-averse, and keep good reserves and additional credit, so I'm comfortable with more leverage at this point in the economic/interest rate cycle.

The economics, and business and political climate make it one of the better choices within the US.

That should be your largest lesson here.

The economics of the market will give you a good idea of it's health and future growth (or lack of).Since you're considering three Texas markets (Dallas, Houston, and San Antonio), coincidentally the same three Texas markets we offer to investors, your decision making is a little easier in that they are all great markets with very good fundamentals.

Most investors from local to out of state or the country buy up in Atlanta MSA as they feel most comfortable with the economics.

~200k in the Humboldt area, to be precise - at that price range I don't think it'd be economically feasible, and we haven't got that sort of money in the first place.

Unfortunately, the largest "Rehabber & Wholesaler" meetup was last night and I missed it.

In other words, if one would pay all cash for this unit, he would get 10% on his money, annually, which is not bad at all.Of course, there are many other variables to take into account.Stability of the area and the tenant, condition of the property, and the general neighborhood's economics and employment situation, to name a few.You can even lower the net to 70% instead of 75%, and still end up with a very good cap rate of just under 10%.For Southern CA property, that is a very good return.Do the math, even with 11% down, and 4.5% bank loan you will have a good cash flow (I did not do the math for this part, will leave it to you from here).Buy it.Amir

They can agree to whatever, for example, at 80% of the loan but I doubt you get it on a small motel like that, such deals kick in at higher amounts and bond financing, economic development and tax credit developments that use non-recourse financing.