The second year we only spent $25,000, and achieved our original goals.  

I am buying it for 20% less than the original list price a year ago. 

Originally posted by @Taylor McClure:I was talking to a man a week or so ago, and he said that his friend used to buy properties that were a few days prior to foreclosure.

I agree with the original poster. 

We're trying to best screen the applicants and my original standard was 3x monthly income and credit scores of 650+.I recieved my first applicant which is a group of 3 (couple and their sister).

I don't care who teaches this stuff its fraught with danger to think you can take title and keep someone's mortgage in place for years and years stuff happens and when it does the original seller gets HAMMERED.

This is my first investment of this sort and it has not worked out how I originally intended but I am learning from my mistakes and will be making better decisions in the near future What made you interested in investing in this type of deal?

They remain whatever the original borrower has.When you use typical financing from a lender, you have the lender's hoops to jump through and loan origination fees, the appraisal has to come in at a certain number, oftentimes an inspection or appraisal will kill a deal. 

The original poster was talking about a $1M investment to get there which I would say that if someone invested $1M expecting that return 999/1000 times they would lose their entire investment (and that might be generous if it's a 1 in 1000)

Quote from @Devin James: Quote from @Dominic Mazzarella: Quote from @Devin James: Everything went wrong with this investment:   - Took 4 months longer than expected   - Cost $10K more to build than we anticipated   - Sold for $20K less than we anticipatedWe still profited with a 30% return on equityThis is why I love Real Estate InvestingWhen you do your diligence and stay conservative with your numbers, it takes something really bad to lose money.Here was the original post:My siblings and I are building a home in North Port, FL.Here are the numbers: - Finished Home Value: $412Kish - Land Cost: $19,750.39 - Construction & Permitting Costs: $304,897Additional costs: - Environmental Site Assessment - General Liability Insurance - Builders Risk Insurance - Construction FinancingWe will be listing the home this weekPhotos coming soon!!