@Rich Weese  Great strategy, i don't think I've heard that one before but definitely can over come objection in a certain scenario!

Every city looks good when you live in San Jose- but rather than let the relative value lure you in you should be taking a VERY objective approach.

Your friend pays back the loan to the lender (father-in-law) with or without interest, with or with out principle, total amount due on an agreed upon date (probably upon sale).

My main objective is to generate $15k of reliable, monthly cashflow in the next 5-6 years with a buy and hold investment strategy.

I would be more open on using creative financing especially if you have good credit and income you can use that to leverage your way into deals with the principle.

I definitely agree with some of the key principle points you highlighted but i have to disagree with some of the other points raised.

I intend to purchase the principle and interest amount owed to the seller.

First of all there is a wealth of info on BP about wholesaling and wholesalers so poke around here.While you will learn general principles though all these sites, i would recommend networking in your area and see if there are wholesalers or investors who might be willing to pay you to birddog for them or do other tasks to start learning the business and the market.

I think that anyone reading this post that's a property owner should use this as a good time to actually have outlined principles in writing of what/how things are done. 

Would like to know/hear from anyone who has bought tax liens from the city of Chicago, IllinoisFrom my research it's a bid down process starting at 18% and IF successful the home owner has 2.5yrs to pay you your principle and interest.