Another poster here posted this formula, so he's aware of it, Im aware of it, Im sure you are...but you wouldn't believe how many realtors Ive tried to explain this to where their eyes cloud over and they dont get it...even after 25 years in the biz....and thats assuming they even return phone calls/emails, or worse, forget everything I've told them when it comes to what I'm specifically looking forOkay, enough of the realtor rant....Let me ask you this....I understand the liability involved by scooping up a deal at 50k below market plus getting the 7 percent on top will cause some problems. since they're not looking out in the best interest of the seller, which would be Mr/Mrs Smith on a conventional property...now, let's look at a HUDLets say a HUD property comes up, and it goes thru the first week, where only owner occupants can purchase it.

Now is a good time to buy raw land as prices are optimal if you can figure longer inventory hold times.

Its about finding out what is happening on the ground and if inventory is low or shrinking and demand is high......BOOMHappy investing everyoneHard work Never Killed Anyone But Why Take a Chance

"industry" rule of thumb is if the rent is over $800 - refrigerator should have an icemaker and be sure to inventory any appliances in the lease agreement....I agree - offer $800 for all three.

In addition, banks, along with conventional mortgage lenders may have debt to income ratios that many investors can not meet.I recommend that investors who have scenarios such as above consider using a hard money lender.

From what I have learned conventional lenders have taken up FHA guidelines beginning last Nov.

For conventional and non-conventional loans.

I would suggest you consider FHA even if you have the money for a conventional loan.

Go conventional (or something else).

It isn't the biggest payday but you still get to profit from finding the deal.Use a hard money loan to buy and fix and then get a conventional loan when you are done to payback the hard money loan.