In all the deals that I run the numbers on; I have assumed that I will have to put 10-15% down and finance the rest at a 30 year fixed @ 7.5%. Are these numbers too conservative? Too aggressive?

I live in Texas (DFW...

You have to have equal or greater equity and equal or greater debt in the exchange property/properties.I would recommend that you consult with a company/person that actually does 1031 exchanges.

Unless you take equity out of the replacement properties and increase your debt you're continuously having to find properties to protect a greater and greater investment or several smaller properties in the aggregate.

For a 1031 exchange you will need to buy a property or properties that have equal or higher debt and equity then the one you are selling.

How to I protect myself when buying at an auction, so I don't get stuck with someone elses debt?

Like I said, we don’t have much money but I was able to get completely out of debt except for my current house.

Now in reference to the bigger picture here, you need to look at and determine your debt strategy and research the advantages and disadvantages of leveraging your money versus paying off debt, which is another discussion in itself.

I've started looking at pricier units in better neighborhoods (not the best, but not the worst) because that $20K difference in price really doesn't affect my debt payments significantly, but it can make a property easier to rent.Right now, I look at MLS properties; craigslist (which in my area is mostly MLS anyway); classifieds for FSBO; and a couple of bank REO sites.

I make a very good income (about $2k surplus per month) and we have little debt ($17k on two vehicles and $5k on a credit card).

I have been in direct contact with a few banks this way (have yet to buy one this way since my offer is lower than they want - but isn't that usually the case :wink: ) These attorneys have been hired to perform collection on the debt owed, so they are usually willing to help their client get paid.Oh, and when cold-calling a bank, I don't ask for the REO department - the customer service reps / switchboard operators typically don't have any idea of what that is ...