That is an excellent quality to have in REI.In your initial description you said, "I am pleased to say a family friend has chosen me to handle their short sale" This threw up red flags for me instantly.

Anyway we could get this @Joshua Dorkin ? I'm at work right now and can't do much research due to many external sites being blocked (thank god BP isn't!) otherwise I would have suggestions lined up for ya. Plus I...

The 50% assumption is more of an instant consideration for a buyer or lender considering a new or additional unit.The size of your portfolio or units under management.Maintenance is a variable expense.

If you have a 2000sqft house with a $1500/mo mortgage then if you run into trouble $100/mo cash flow won't cover you very well, years of accumulation will be wiped out instantly.

Then there are the issues of misusing terms to slide ideas past, buying under market value, claiming instant equity on a deal and financing blue sky as an acceptable collateral amount.Lots of wild ideas, presented with a somewhat twisted logic, a dash of hype and ignorance of the consequences is where most are in suggesting "creative financing".I do like other people's money over bank financing in some cases, especially in the short term, which can be up to 5 years, but banks usually have a better solution long term.

I can't say for sure, but if your offer is accepted, you may have already made the biggest (and worst) newbie mistake of all - offering too much.In my area, if a house is listed in the MLS and needs "minimal work", it usually sells to an owner-occupant, and they usually pay too much compared to what in investor should pay.Also, realize that the majority of offers made by experienced investors are NOT accepted.If you really made an offer low enough to get you 30,000 in instant equity, your offer probably won't be accepted.

That will destroy your cash flow instantly.

What if you put one of those pet safe wireless instant fencing systems and a pit bull in a dog house next to the shed.

If and when those types of deal come on the market they usually never even make it to market as they are snatched up instantly due to being under priced.

You can come network, meet other BP members, and ask as many questions as you like and get an instant response.