This type of deal works best for highly distressed properties that need extensive repairs, major remodeling, or a total gut.

This is, in many regards, the best case scenario.There is certainly nothing wrong with entering distressed markets, but distressed markets are also highly vulnerable investments.

. - You get your cash back - you will have around 20% equity on each deal when you refiGiven that buying a distressed property and refinancing take you 6 months because of the seasoning period, It is still better than saving money each month to buy another property. 

Locate distressed property.  2.  

You can see the distress house that is vacant and feel it.  

While driving for dollars I can cross a distressed home, I wrote down the address located the owner and got her contact information.

While driving for dollars I can cross a distressed home, I wrote down the address located the owner and got her contact information.

This will be my first property that is distressed like this.

Cash also allows you to buy auction or distressed properties that don't qualify for loans.

Starting to network and building a team now will be vitally important to find those off market distressed deals.