Finally, I am interested in any wholesale contacts or real estate agents that focus on distressed / short sale / pre-foreclosure properties in the area to help with my investment property search. 

@Gene Hardt if the loan with the balloon does not have a pre-payment penalty, can't you pay off the entire loan before the term is up?

@Mas YoshidaWhen I have run our numbers, where we are getting about 1-1.25% of sale price as rent (100K house renting for $1000 - $1250) by the time we take the depreciation, it wipes out all of the 'cash flow' profit, so now taxes currently due.If you are going to leverage with any non recourse loan, I have found they do NOT want to lend on; Pre 1950 properties, houses converted to duplexes (at least older ones), or loans less than 50K which would be a 125K property at 40% down payment. 

I'm getting ready to purchase a house for my family within the next 3 months we got pre approved and are looking.

Hello @Shaun PalmerI just use standard MLS Purchase and Sale Agrements (PSAs) that title co's are used to.A standard addendum called (here) a Method of Payment Addendum is pre-printed and just needs you to put in the amount down, term and rate.  

The $100,000 rehab cost includes all permitting, inspections, etc.All in, I am estimating gross profit (pre-tax) of $35,000 - $40,000.Let me know your thoughts folks! 

Our state lobbyist out of Olympia spoke for a full hour on the socialistic bills and ideas coming out of the city council in Seattle in the Capitol.They are contemplating or have already enacted rules regarding no rent raises when service calls are unresolved, must show cause to terminate a m-m agreement, rent control, 5% capital gains taxes on RE sales (in addition to the 1.7% excise tax), pre-'78 lead inspections, periodic unit inspections, etc.  

I don't have the funds to personally purchase a pre-foreclosure.  

@Victoria Creighton, My understanding is that the pro-rata rule applies to ALL IRAs with pre-tax funds, including rollover IRAs.  

We reach out at multiple times throughout the redemption period, all the way to the end.Part of me is beginning to think that foreclosure is such a touchy subject to many people, that many would rather just ignore taking any action, and just let the property go, even though our "cash for keys" and offers to list their properties give them a chance to make something good out of a bad situation.Conversely,  somewhat seasoned marketer in me wants to stay the course, and keep altering our message until we improve our response rates; after-all, people have been successfully marketing to people in foreclosure and pre-foreclosure for years, which makes me think there is hope to ramp-up response rates.Sorry for all the text, I'm thinking out loud a bit here.Has anyone had any success marketing to mortgagors during the redemption period?