Wisely so because, to varying degrees of culpability, EVERYONE can bear some responsibility for the core problems.Those now maligned "Hi-Performance" exotic Pay-Option and ARM loans with low teaser starting rates became widely promoted and sold to folkswho had no business using them.

So, if you have a regular, full-time job, you have to work the same number of hours, plus one, on real estate.Since you're likely to be in a net loss position, tax wise, at least any actual income from the rental will be tax-free.Jon

Is this a wise investment if I plan on living in it for 5 years and then sell?

The house exterior wise needs 20k of repairs (roof, siding, windows...already have 2 quotes for 17k, just using 20k high side)....inside, kinda the same....both kitchens and baths are in poor shape, and same with pretty much the rest of the house.

pulling cash out of it without a CLEAR IDEA OF WHAT YOU WANT TO DO is not wise (in my opinion).third - the term "LLC" means absolutely nothing without a CLEAR CUT idea of what it is you're going to do in order to have the LLC GENERATE REVENUE of some kind.this is very important.

He would tell me sales prices of houses selling for 500k-1M on Grandview Ave in Pittsburgh he had the chance to buy for 50k 30 some years ago.When i was about 18 i started looking for my first project(rehab) hoping if i found the right deal i could sell it to a family member there were 4 amazing houses i came across but could not sell the idea to anyone there was even one house an old lady gene a friend of mine was going to sell me for $2500 that was rentable as is i could not come up with the money and she was scammed buy the RE investor i learned so much from he saw a good deal and took it. the house hunt never stopped i started showing more houses to my mom and she became more interested. 2005 was a terrible year along with a slow work year construction wise i lost my best friend, grandmother and father then my house ,car everything but my dog due to funeral expense's i realized life was to short and i would not wait to get into this business anymore i moved back in with my mom and became even more motivated to get a rehab going i showed my mom a property in summer 2006 and she became interested and helped me get the house it was almost condemned we bought it for 6k and brought it back from the dead if you visit my myspace page its the yellow house on the slide show Ive since done 2 more and I'm ready for many more I've decided this wont be a hobby i sleep RE literally. ill live in the streets if that means i can keep building this dream.

i assume you're single - KEEP IT THAT WAY for a few years.buying a personal home low and fixing and selling (in my opinion) is a great way to start out.it makes financial sense and is low risk asset protection wise...u buy in your name - get a 10 year arm - some nice interest only loan for 10 YEARS (see a mortgage broker) and be out of there in just over 2 years...if you can't sell it right away - you've got 8 years to move it.make renovations nice and stream-lined.

Then, until the house is sold you are going to constantly be worried about whether or not your loss mititgation department at the bank is going to wise up to you taking the deed.

thank you both for your wise words, well anyway i guess i'm just so anxious to do my first deal. especially a deal like this were the homeowner is in distress and states to you how much equity is in the property (i know i'm a beginner, but i don't see how he'll benefit by lieing to me about the amount of equity in the property, because he already stated he doesn't want to sell the property, and i already stated to him i'm gonna view the property/mortgage paperwork)well anyway i must say i agree with you both, from first look it seems the best way to do this deal (thats if all the number are right) will be to purchase the house for the amount left on the mortgage, and give them moving cash and etc (this way i'll have alot of instant equity within the property, which i could either wholesale to another investor or put it on the market at a small discount and sell it retail because of the properties perfect condition, then i could even try a short sale to build up more equity to make the two above tactics more profitable for me)now the only tactic i can think of that would work, were they will get to stay in there house and will be profitable/beneficial to me as well is to then purchase the property real cheap (whats owed on it) and offer to lease option it back to them at a higher interest rate and at a higher property price, but i think this tactic will be risky with this individual because of his credit and the nature of work he's in (construction were some parts of the year your without work and tring to collect unemployment) so this is what i plan on doing, i first plan on putting together a list of questions i must get answers to at the tuesdays meeting i plan on having with them, then i plan on explaining the whole foreclosure process to them and the uphill battle they face (which i hope will change their position about not wanting to sell their house under any cumstances), then i plan on making a smooth exit and letting them know i'll be back in contact with them to let them know what i think their best solution is to solve their problem (this tactice is to buy time, so i can really cruch the numbers and speak with others to really figure out the best win-win for everyone, thats if their is a deal their)if anyone has any other suggestions please let me know

I am here to learn from as many wise RE investors as possible is this community.