Here's what I discovered: Assuming a $200,000 purchase price with 20% down, 8% for vacancy, 10% for repairs/maintenance, 5% for capital expenditures (reserves for future big things) and 12% for property management (even if you plan to manage yourself, I always advise including this expense, because someday you'll be so big you can't manage yourself, and if you can't afford a PM today, it's not an investment you are buying, it's a job) this is what I discovered (it's not good) (If you can't read this, download the PDF here) Here are my thoughts. 1.)

The ones I find in good condition I sometimes keep as rentals if I can afford them at the time.

I can afford, based on the current 2013 tax information that I currently have.

You can save yourself a few bucks doing some of the cosmetics yourself like painting.A duplex that you can't fix or afford to have someone else to fix shouldn't be worth anything to you.

I have crunched all my numbers and I can certainly afford this and I'm debating between waiting 4 months until I have enough to cover down payment and reserves OR looking into a loan for down payment because I don't want to let one of these properties slip by.

We just literally couldn't afford to bring a check that big to closing.

There can be valid reasons to do this and affordability is a major concern as if this is misused it will be seen as predatory lending.

So, they limited the number of allowed medical expenses that you can use your HSA on and of course, for most people with HSAs, the cost of the premiums went up ( I'm not sure how that makes it more affordable?).

Also, they may be in foreclosure because they were unable to afford the payments!

Can you afford to wait until their out?