Fat chance.There are a lot of people that have REI in Phoenix, and I'm sure they're not buying on this 2% rule.

You need to make sure that you are buying at a high enough cap rate that you have some fat in the deal to tide you over if vacancy rises.  

READ BLOG HERE The area (44108) that this apartment building was in got a big fat F on my Blog.

The bank initially pre-qualified them for the loan but then, when it went to underwriting, it was a big fat no because of the no history. 

A good rental reference or two would put my mind to ease, that and of course a fat security deposit.

Originally posted by @Nicolas Beaujean:@Jay HinrichsLOL, two hours ago I didn't like you-now I do hang around BP long enough and you too will be offered a 20mil loan at 3% and you dont even have to make payments.Just have to send 25k to buy an insurance policy that the lender will be repaid  :)  you Render Fat  not loans !!!

Phillip Gonzales I know nothing about you other than what you have divulged in your message here but to me this is the same no-win situation as when a woman asks "does this make me look fat?"  

When I'm "fat" (good cashflow) I'm inclined to look at acquiring High Appreciation/Low Cashflow properties.When I need cashflow I tend to look for Lower Appreciating/Positive Cashflow Real Estate.Then there's my decision to:Buy, Fix-up, Sell?

I am working on about a 10k margin, I know thats not fat enough for most of you but if I can break even and gain the knowledge, then for a first flip it might be a win.

So it looks like they got the house with termite for your contract price.The house had very little equity as it was encumbered with a fat HUD insured reverse mortgage that was called due.