Adversity is the mother of invention, or something like that. 

If you buy your property for the right price and are adequately insured, even the most risk adverse should sleep soundly. 

The home loan interest is tax deductible, and the properties you're purchasing wtih fixed rate financing will provide a nice inflation hedge.And buying at these beaten down levels should return 3-5% in annual cap app over time, as well as modest rent increases over time, but that will be gravy.You'll want to keep very comfortable liquid reserves to absorb a confluence of adverse events occurring in a short period of time, perhaps one year worth of payments on your primary and 6 mths on your investment properties.

Thanks Charles.I have seen just as many contracts fall out at auction as regular sales so there is still risk.I am not adverse to wholesaling properties.I would have to look at auctions more closely to look at pro's and con's.I see Williams and Williams all the time try to persuade banks to sell with them.Many times the winning bid falls out and the bank doesn't sell anything.There are also fees with doing auctions such as bid premiums so the auctions cost savings isn't that much over an broker/agent.What the auction company could claim is more market exposure,bidding frenzy of auction atmosphere to drive up the price,etc.I do appreciate the insight into auctions.Charles if you could give an example of 1 to 3 transactions you were involved with and closed in the last 6 months it would be valuable to see how they were put together.Thanks

Also adversely, NARS numbers do not include FSBO #s.

Also what is your business model: hold and rent, flipper, wholesaler would have different cash requirements.Does one want to expand the business using leverage or become more risk adverse and delever to a more cash position?

You would also have the officers/owners of the company indemnify you against any adverse proceedings arising while they were at the helm.  

s response is an extreme example of the perfect way to leverage your cash such that if your ultimate goal were to have a large number of properties that cash flow, that is the way to go.Others are very debt adverse, so for them, paying cash (or as much cash as possible) is the best way for them.It all depends on what works for you and the arguments are no difference whether it's your primary residence or a rental.  

If the seller is experiencing some form of 'extreme financial difficulty' that may adversely affect future payment, it would be in the interest of all involved.

I'm not adverse to just telling him what investors I know would pay for these and say if it ever comes to the point you just want out, call me first.