I GROSS just under $50k/year from my day job and have managed to pick up three rentals with a fourth under contract over the span of about 1.5 years.

I live in the master and rent the other three.

Two were purchased though realtor that were foreclosures, one was estate auction, and the other three were foreclosure auctions.

Two or three months ago they struggled to pay a monthly payment and now you wan them to pay for a balloon?

We had one failed bank, but three others in trouble that were bought out.

If you have any fannie loans left (and good credit) I would definitely take that 250k and diversify in three markets with eight-ten properties.

You can even have a tiered structure where at the release of each contingency more and more money becomes non-refundable.Nick all of my clients I work with I want to see their proof of funds.

The couple rents the house for three years, and then moves into it and uses it as their primary residence for the next three years.

I know it not the most Ethical thing to do but I go by home depot or lower and get three electrical heaters take them out of the box my self real neat and put them in and plug them up for temp problem call to get the heat fix, some time may end up being on Tuesday if it a part not in stock after they finish I place it back nice and neat in the box as I got it and take it back to Lowes or home depo.

The other option is selling it now and making just 10k after paying realtors and closing costs for buyer etc..If I sell in three years to avoid paying capital gains, I am calculating the mortgage principal will go down $2500 per year and the property values will go up by at least $5k.