inner city 40k TK are HIGHLY risky for OOS investors.. experience dictates that.. why else would homes be that price if they were so sought after the locals would snap them all up.. the locals don't and wont  out of state do because they know no better and are sold a line of sales pitch.. from many all over the country.. its the same if you go into Frazier in Memphis or WEst Jackson or Ferguson etc etc.AS for our friend that lives in Puget sound if they think their WEst coast tenant experinces can be duplicated at the 40k to 50k range in the mid west they are going to have a stiff learning curve to go through.

I can tell you there is stiff competition in OTR and throughout the urban core...

FHA would be only mortgage option as I could not put down a full 20%.Quick Facts:No debt / exceptional credit (800+) / W2 working stiff 9+ years same company I don't even know if the 1st strategy is feasible. 

NOtes usually have an annual %  rate.. so for example.100k   10% interest is 10k per year / by 360  = daily interest of  27.77 per day.when doing these types of notes do check on Usury laws in your state.. some are quite stiff and some its Katy bar the door go about as high as you like.

And they may say well what about tenants that would stiff me? 

Many people break this rule, but just be warned the fines can be stiff and painful.

If you're successful, IRS will waive the penalties and will send you another notice saying that it was one-time only forgiveness, and in case of any future missed filings you will be hit with stiff penalties.Hope this helps.P.S.: Did you register your LLC in 2016? 

Lockout - you can't prepay, or the penalty is an extremely stiff percentage, so you practically cannot prepay.2.

We've made money in both, but there is some stiff competition. 

With the REO inventories being so low and competition so stiff, I would like to acquire more properties through foreclosure auctions (online or live).