He said something to the effect of he doesn't worry much about the contract cause the escrow holds alot more weight than the contract.

So, people often say that you can expect to pay 50% of the market rent toward upkeep on a place.

If you don't have a property manager collecting the rent, your tenants will have to write out TWO rent checks each month - one to you and the other to your IRA.You and any disqualified parties are prohibited from using the property, living in the property, or making any repairs or doing maintenance or upkeep on the property.  

I'll second the suggestion that if you end up going long distance, stick with nicer properties - the turnover, upkeep, and repairs that you'll deal with on lower end properties will be tough to manage long distance.

Screening is worth it's weight in gold and costs you nothing to do.

Another update.I backed out of the deal.As soon as FNMA accepted by offer, I had to commit to EMD and sign their REO addendum.They asked for a 90 day deed restriction, which I was OK with.The property is probably worth 165K when it's rent ready, but right now it's not.My accepted offer was 131K, with an estimated 20K to correct the violations - well the violations I know of - illegal fence, illegal staircase, illegal pond, two illegal exterior structures (gazebo style steam room and weight room), and illegal driveway and decking, plus some interior violations on a master bathroom plumbing.Oh, and a 345K city lien from years of daily fine.So when the clock started ticking I began to do my "thorough due diligence".Had my attorney reviewed the contract and looked into the lien issue.Now, the city, as a matter of policy, WILL reduce the lien down by 90% once the new owner makes the corrections and clear all the violations.

In no way would I ever try to take advantage of a seller in that way, but when we first met at the property and she began telling me her story, she became choked up and tears streamed down her face because she had no idea how she was ever going to get out from under the weight of that property.

Condo buildings, especially high rises, have limits on dogs by weight and it is often 20 or 25 lbs or so.

Your loan amount will be 32K at best, most likely 30K, both below most lender's minimum loan amounts.No LLC owned individually with less than about 5 years and a net worth of less than a half million would be seen prudently as carrying it's own weight, credit on business entities is pretty much a myth for small investors.

In This time, in This place, at This age, at This weight, with These resources, you are surrounded by opportunity.