So that the tenants that rent your propertie pay what they are suppose to, to decrease your risk of losing the property because they didn't pay the rent.

Should I at least try to talk to to the owner and show him that he is not going to find a better deal?

@Ryan Farr, if your intention is to to be paid the full sale price on closing (which is usual), the Buyer needs to come up with the full amount - either from their own cash reserves (like you did in your example), or provide the full balance from their Lender (after which, they pay their Lender back per their agreement).On the other hand, if you would PREFER to be paid back monthly, you could pre-arrange that with your Buyer.

I think 12% is a pretty good guaranteed return on capital, so you have to to think hard about where you will get a better return.All that being said, if I had an option of 3% or 5% down, I would never put 20-25% into a deal.

The tenant may decide to toe the line and pay up.

I already own a few properties in Chicago  but want to to be sure that I am looking at the best location for my new investment.

I'm new to to real estate investment and have been reading forums on here for the past few months and recently started listening to BP podcasts.

I came across this blog post and really enjoyed it.

http://www.biggerpockets.com/renewsblog/2013/08/28/million-dollars-of-wealth/

Anyone know any others or links to some good ones? Love to see specif...

How much do you think it would cost to to rehab a rental property thats a  3 family and most likely in need of a total gut job.

There are also only a handful of PMs (that I would even talk to).To answer your question, yes those properties exist.