Obviously, the more money you put into and hold in a property,  the less $$ you potentially have to play with in terms of getting another property (assuming you don't have very deep pockets).

Continue to read and listen to the podcasts.

I don't buy properties that require an HOA and the utilities are always covered by the tenant.So if I have a market that has 3B/@B homes for $100K the 1% figure I like to apply only tells me that the rent needs to be around $1000/month.When I find properties that fit that criterium, all the other important aspects start coming into play, but all the properties that don't meet the 1% are out.These other criteria include things like the quality of the schools, the distance to restaurants and shopping, the crime rate in the area, the stability of tenants, meaning how long are typical lease agreement.

Ashley - I don't know if this is a good deal or not - but I did respond to that listing - it looks bad and empty - There could be lots of equity or lots of stress - I like in and out in a short period of time.In my opinion every property offer is a "deal" - Every property offered is or could be a good deal -The only thing that make a property a bad deal is PRICEEvery property will sell if the price is rightTime on the market and price (reduction) are close cousins -Price softens as time moves on and motivation and reality is realizedEverything will sell at a price -The first thing I'd want to do is get the history of the property - how long on the market, why is it vacant - what's the reason for selling -What is the current mortgage balance - is it current or in the arrears - What other liens or obligations are on the propertyHow many owners - decision makersWhat is the commission - will agent splitAre there open to a reasonable and creative offerDo they want any profit or to just get it out of their nameCan down payment be paid over timeHow much paper with they accept - delayed payments - principal mortgageAshley - since you exposed this property to all of us - You should see if you can get the answers to those questions above - and play the game - WHAT WOULD I OFFER?

Could also help you over time to start or continue building bank relationship. 

The seller should also be added as the mortgagee.Not sure if there are any other local laws that come into play. 

It is within 60 days.From my FHA loan:"Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall continue to occupy..."

I'll just put 5% down, and continue to do that every 12-13 months until the bank gives me a hard time.

We've been playing phone tag. 

CA prime spots are a long term buy and hold play.. as we know the CA market is subject to some swings in values some can be dramatic.. but over time the state has shown some of the best performance in the entire US... but if your one who worries about value on a daily basis then RE can drive you nuts... if you have a long term investing horizon then you buy and hold and if and when we hit a trough you hold through the trough.. you only lose money when you sell at poor times.