I am in the process of purchasing an REO property with a number of violations by a previous owner accumulated over time (years) to a very large sum.

Usually years of accumulated silt have filled the clay weeping tiles, the earth on the outside of the home is pressed tightly to the concrete foundation leaving water no where to go.

The income obtained from actively working is redirected through investment opportunities to further perpetuate the above and increase the debt coverage ratio (lower expenses & higher income). 1.5/X DSCR + 12+ months of reservesIn the beginning it may be difficult since there is no passive income generally (only a job) so its a slower process which can be sped up if the acquisitions and accumulation portion are strategically managed.

If the tenant does not remove their belongings and the accumulative value is over $100, our landlord tenant-law allows a tenant to choose to have their belongings moved to the nearest public property (the curb) or put in reasonably secure storage for 30 days.

Cash value accumulation of whole life insurance is a great way to fund real estate.But you must buy from a mutual life insurance company.

So understanding what current amount is owed and what interest accumulation may occur during the term of finishing the foreclosure, alone with advances made will likely be where the deal stays together or falls apart in regards to the asking price being proper.

@Joshua SmithGenerally yes, but now you have to contend with potential double taxation and accumulated earnings tax.No simple answer and you should consult a CPA to determine the most tax efficient structure.

To me seller financing seems like one of the best ways to accumulate SFRs.

Honestly, there are so many contributing factors, I think it all has accumulated to this result.Never really considered the I Buyers though, so that is a great point.

While I have accumulated a portfolio of several properties in the Detroit suburbs (where I live), I have been focusing  more within the city as of late.