The moral is, in spite of assurances from agents that REO’s are automatically clean; don’t buy anything without adequate title insurance.

Choosing one over the other suggests you operate a very high risk business with less than adequate screening standards.

In Texas it’s common to be unable to obtain title insurance for 2 years after the foreclosure auction unless proof can be provided to the title insurer that all foreclosure rules were followed including proper and adequate notification of ALL interested parties.

Seems like there are a few servicers out there that would be adequate.

Buy for cash flow, not for appreciationDon't be over-leveraged & have long term fixed debtHave adequate cash reservesMost investors who I've heard talk about losing their shirts in 2008, it was for one or more of these three reasons.They were told to invest because "real estate only goes up" (buying for appreciation)They were 90-100% leveraged - which was fine before the downturn, now they're mortgage payment was higher than anything a tenant could pay (especially when so many lost their job).

Especially after doing your homework so adequately.

Depending on what town you’re in, you might be able to just pay cash (but I wouldn’t spend any more than maybe $120k so you have adequate reserves especially considering you may not have steady income), or perhaps your parents would co-sign on a loan.

A 6 month lease is more than adequate.

Since the money is taken out during the construction loan, the refi will not be a cashout.I also like to maximize the amount of cash available to me, so that would mean maximizing the construction/perm loan, increasing my payment (assuming that the income adequately covers the costs and debt service).Not sure how you are getting your mortgage payments (they must be just P&I) as the $600 would be less then your build cost (stated as $180k).

Is it performing adequately for what you have into it and the market conditions?