The B-share mess, reverse churning and fee based account were just emerging.

And perhaps that was one of the intended consequences that small time operators would be out of the business and a "professional" mortgage broker would emerge.

He's missed work 2 days already this month.He now needs snow tires so he can get back and fork to work, but that means he can't pay the deposit when he was supposed to.Obviously he made a mistake by not having any emergency money, and I believe the landlord was desperate to get the place rented this time of year and made a mistake by not getting the deposit before they moved in.I told him to go to the landlord and explain his situation.

I look at sales comparables and population/demographic trends, and look over the area on a map and on Google Earth.Second, I contact the local citizens with regards to the building and if possible, the previous ownership.Police Department can tell me insider's opinion and can give me a breakdown of crime in the area.Fire department - have they had any emergencies at the building recently.City Inspector - are there any outstanding violations?

I keep cash as an emergency backup.

Make sure the cash flow is secure with high quality tenants.Eliminate all personal debts.Secure your personal income streams (work / education / skill development) for yourself and your family.Leave yourself a cash emergency fund that can cover a year's worth of all personal and real estate expenses.These first few properties should be completely paid off.

This could be one I keep for the long haul, or in maybe 5 years sell and take the equity and appreciation and use that towards a duplex or multi family.For a little more background about me, most of my dollars are tied up in my IRAs (probably about 5 times my current income) and I dont have a lot of 'liquid cash' after accounting for personal emergency funds etc...

Be sure to build up a decent nest egg for emergency repairs like new roof, or furnace failure, six months vacancy, etc.

Circuit breakers and the emergency switch sometimes end up in the off position (also possible for systems with a pilot flame).

During that time learn how to find and buy properties sub2 so minimal cash is needed except for an emergency fund.