All before anti equity skimming laws and our very rugged west coast pre foreclosure laws came into force in 07 and 08.... they were very good as stated .. just did not realize you can't make a business out of 200 a month cash flow with no equity or reserves..

FHA has anti flipping rules that just went back into full affect on Jan 1, 2015.

It's essentially an "anti predator" law that is so poorly crafted that it puts any transaction under scrutiny.

If you're not in the anti-Durham crowd there are lots of options there.

They are basically anti-student ordinances towns pass because students are not a protected class. 

You can find cheap stuff in that town and while they're lower class tenants (C at best), the entry point is in your ball park and they're decent tenants for C class, plus the town isn't anti-landlord like other NJ towns.

That is actually one of the big arguments they (Anti Airbnb Legislators) are using while pushing the new Anti-Airbnb laws that could pass in November (Big developers evicting folks to Airbnb rent controlled units in nice areas). 

If it is, your likely going to continue to have problems with "anti-flip" restrictions so you will need to decide if this particular deal is worth pursuing.

Some are pro, some are anti creative solutions.

And then I performed.. usually renting back to them.. this is how you get the deals they don't want to move.. even if you bought it and gave them some money its not about that its aobut keeping the kids in school or the embarrassment of telling friends and family why I had to move... etc etc.I only did this with properties that would net me at least 30k on a quick sale.. so I never also went the no equity route never saw the purpose in that.then the anti stripping law s came in and in our states you can't rescue one in foreclosure and rent back to them its illegal.. you also must share a % of your gain if you resell in a specific amount of time.. now people violate the laws all the time but for me with big exposure it put me out of that model I Have not done it since the laws passed.