It's funny... beginners read all the literature written about the housing market from 3 years ago and they say, 1% rule, lots of cash flow, but don't realize none of that works when the housing prices have doubled the last 2 years, as have interest rates.  

I’ve been browsing Paperstac quite a bit lately, but I’ve noticed that most of the properties against which the notes are secured are decrepit shacks located in very rural areas.I’m fully aware that the kind of borrower who defaults on their mortgage won’t usually be living in an ornate mansion, but do you know of any way to buy notes for properties located in major cities, or at least somewhere where home values won’t tank 50% when the local chicken slaughterhouse or glue factory closes?

@Daniel Kosciuszko be prepared wherever you invest to pull out anywhere from 50-80% of your money if it's a good deal.

I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation.

There isn't a one size fits all rule.

@Willam KuczmeraIf you decide to proceed with the distribution, the following IRS web page is a good resource for the rules and tax consequences. https://www.irs.gov/retirement-plans/plan-participant-employee/401k-resource-guide-plan-participants-general-distribution-rules

This mansion was formerly a formal Bed and Breakfast. it has the legitimate hotel fire protection devices and systems such as stairway lighting, pull down alarms and a full commerciall alarm system which are a bouns $40-50 k system not found in other places.

I'm all ears 🙂  also, what's a good rule of thumb for coming up with a good rate to charge.

I'm here to pick your brains and get some advice on the best ways to connect with other pros and investors on BP without stepping on any toes or breaking any rules.

If I put a large amount of cash down, like 50%, the seller might finance at 4%.