However, historically it takes 8-10 years for inflation adjusted prices to reach their previous highs.While I agree with you that we won't recognize the bottom until after it has occurred, we certainly are not there yet - not even close.Mike

actually, noobdog, that is pretty much what i had in mind for my first home, although financing with an ARM never occured to me.

If inflation does not occur then I lose, relative to what I *could* have earned in CDs but I am willing to take that chance.

You are taxed on the gain when the sale occurs, how you use the proceeds after the fact is considered after-tax.

For the few occassions that this has occured, I also gave the seller a month's mortgage payment as good will - but there was no requirement.What you need to do is market, market, market to find motivated seller leads so yuo can be picky and choosy.

I'm aware of at least three situations where this occurred in this area, including one I recently mentioned.Leaf - mortgage broker lent money for downpayments and hid that from the lender.Lincoln - false documents for borrowers income.

Insurance in place, is it feasible to insert a clause in a Rental Agreement stating that for example, "Tenants agree that they will bear full responsibility for any damage, whether through negligence, deliberate act or accident, occuring from fire in any fireplace the determination of which shall be concluded forensically through municipal/county/assign-your-jurisdiction fire inspection" or something of the sort?

Maintenance I include landscaping, roof, issues that spring up during the year. 10% is good, also I save a portion of the income for a reserve to fix anything that occurs during the year.2) Depending on the property management company/manager.

The problem is that you haven't experienced the real expenses that occur.

My first indication that anything was wrong occurred when the tenant called me to report that she was feeling very uneasy about her live-in boyfriend.