Whether you are looking to be a principal, a deal sponsor, or a passive investor, have something worthwhile to contribute.

A - Invest $100, add value to $120, market corrects to $100 in year 1, but you achieve an 8% return from cash flow and principal reduction.B - Invest $100, add value to $120, market remains as-is (or it takes longer to correct), you achieve target returns of 15-20%C - Invest $0, earn $0.Substitute appropriate figures...just trying to generate dialogue.It's hard to model things like a market correction or rising cap rates, get excited about lower returns, and make a purchase but idle cash and the war chest strategy (scenario C) can be costly relative to scenario A (except with an appreciation only/market timing strategy...let's ignore that one for simplicity).Many of us have analyzed and turned down a ridiculous number of deals and we see a lot of posts about waiting for a correction but the math seems to suggest otherwise if investors are adding enough value (and generating cash flow, using long-term debt, buying in solid locations, or investing for the very long-term).  

If anyone knows the Virginia market, this property is located in Petersburg, VA in case that influences your feedback.I have negotiated subject to and owner financing to purchase the deal using the following structure: I will pay $8k in cash I will take over the existing $59k mortgage payments (28 years left) of $506.70/mo PITI paymentsThe owner will wrap the remaining $8k into a second 15 year mortgage of principal only payments of $44.44/moTotal monthly payment $550/moThe Deed of Trust will transfer to me at closingI will sell the property via Owner Financing to a tenant buyer using the following structure: Purchase price $85kPay $10k downI will finance the remaining $75k for 10 years at 10% interestMonthly payments of $1000/moBuyer may cash out anytime after the first 5 yearsTenant buyer covers repair costsDeed of Trust transfers when tenant buyer cashes property outBasically this strategy is a way to get all my money invested out of the property and avoid typical rental property expenses to keep all of the cashflow.

@Joe Yobaccio definitely a concern — but making 20k a year in appreciation and 5k in principal paydown/tax helps that concern 20%down. 

Putting 3.5% down for FHA.Mortgage which includes PMI insurance, taxes, house insurance, principal, and interest is $1,570.Rent for one unit is $900.

I have enough money to do a $50K Recast on one of my properties with the highest principal owed.

Taking advice from Rich Carey, we are currently working to drive down the principal as much as we can to a point we can refinance and make the numbers work. 

We agreed he will received principal + % of profit in return after the flip.

Yes, cap rates are lower but with appreciation and reduction of principal, you will do as good as mid west or mid south.OOS investing is great but u have to scale quickly to budget for your trips at least semi annually.Good luck to both of you!!

So 100k commission 50k to brokerage, then remaining 50k top person gets maybe 24k, middle person 17k, person that is junior maybe 9k.As a commercial principal broker I get it all because it is my company but I earned my stripes with 15 years in the business.