If I buy a house for $400k, and the market drops and the house is now worth $300k, I am under water.

Hello I am a new wholesaler and I picked up a deal just outside of 1604 near San Antonio that I believe is great opportunity. However, I received some feedback from one of my partners that the play here would be for a...

The property is worth $8000 only.

You both have to decide whether this is worth the fight.

@Kyle Kline“Investing for equity and not cash flow” doesn’t mean “buy properties that don’t cash flow.”To me, invest for equity not cash flow means that the PRIMARY reason to invest is for equity growth and an increase in net worth and NOT cash flow.I’ve been investing for over 40 years and while cash flow is important, it’s not why invest.A property must be self supporting ie produce enough cash flow to cover debt service, operational expenses including repairs and replacements.

Also remember 3.5% is your down payment, but you will also have closing costs and prepaids which might add to that number.#5. 

To answer your question, “it depends on how much money/net worth you have.”  

If you're not set on a specific market, it's worth waiting until you choose, as forming the LLC in your target state can simplify compliance, property registration, and taxes. 

Remember, no system is perfect, so avoid the temptation of constantly chasing after the next shiny object.

As you know bedrooms are worth more to appraisers than an extra living room.