Thanks for all the welcomes guys, basically I started about 4 years ago when I borrowed some money from a relative and purchased a fixer upper.

It may be decades until we see the markets of 5 years ago.As far as the downward trend and the sub-prime crisis as it relates to REOs, I think we will continue to head downward (it will get worse from an economy perspective) for another year or two then will turn upward.Of course the 'downturn' is when you buy and the 'upturn' is when you sell, if you choose to sell.The hardest part, of course, is getting the lenders to lend.

Bank #1 was processing and going along fine to close until at the last minute the underwriter didn't like the "feel" of the loan - she thought somehow I was related/partners with the person holding the mortgage (who I had just bought the house from), and thought we were trying to cash out the house.

Here's my relatively short response.

If this lease-option "buyer" is a relative newbie (and I'm betting he is), then I would NOT do this deal.

The truth is that the vast majority of newbies in the rental property business fail in a relatively short period of time.

Section 8 will immediately cancel all contracts with you and you may be in legal trouble on any variety of charges relating to scamming this poor woman and her 7 children who lives on public assistance.

I'm being told I have to of worked in a job related to my education for at least a year in order to obtain a mortgage.

Is it possible for a first-time home-buyer such as myself to assimilate all of the information from books/Internet research/television programs, maybe some phone calls from a realtor relative, but not go with a real estate agent?

I am relatively new to this business, having done only a few deals.