I literally grew up watching the house prices rise, rise, rise and then dramatically fall in 2008.

If a Realtor gets a few listing from the leads, and then later had a closing fall apart and they need an investor to step in and close the deal, they will probably contact you.

I am interested in properties between the triangle of Fall River, Taunton, and Plymouth. 

Also, CA will fall into the ocean during the next big earthquake.  

I do not think you would be required to provide that, however the listing agent may want it to simply hand off the the sellers and say " look here are something you may want to consider taking care of so we don't fall out of contract again". 

I want to know if there are folks here on BP that have been doing this and so what are the pit falls, and implications on tax and other legal issues. 

This one is for active investors in the fall river Market .  

(Bloomberg) -- Real estate investors could be in for a shock if interest rates rise or demand in some markets continues to fall because “amateurs” are plowing money in at high prices, betting on rent increases that may not continue, said Tom Barrack, the billionaire chairman of Colony Capital Inc.

The advantage of the 5% downpayment over the FHA option is the PMI that would be on both loans, automatically falls off of the conventional loan once you reach about 20% equity in the property.  

What words of wisdom do you have to avoid potential pit falls when purchasing a note?