My thoughts on how we let the whole thing happen goes back the conception of the federal reserve system by a group of competing bankers in secrecy (all public data now).

Before the foreclosure bubble exploded, my network of mortgage/real estate friends were noticing that lenders were not filing/reporting NOD's so as not to impact their reserve requirements negatively, which concealed the extent of the problem from the public for some time.

I'm trying not to be discouraged...And I certainly don't want to jump just because it seems like a good deal...I think the part of my equation that I'm not factoring in is this:If I get the home at the rate I hope (60k) and I borrow 80k that will leave 20k in reserve.10k I will keep untouched for unexpected things.

I just had a heck of time reserving a decent room.GO CARDS!!

I estimated the payment will be somewhere around $536 Rent will be at $1100 -$536 HML payment -$150 tax and insurance (estimate) -$200 per month to put in reserve incase of vacancy etc.

Once the judge signs the paperwork after the sheriff sale (confirming the sale), it's over.

. - In return of the T/B not purchasing the house, I gave back half the option fee as I have setup in my contracts and also as confirmation that he is not buying the property. - Yes, this is all in writing and attorney reviewed.

The waters of the reserve can be explored with guided dives in a number of places.

Today most rehab or hard money lenders expect you to have some of your own cash in the deal and to also have adequate reserves.

You need adequate reserves to be in the rental business.