For example if you have multiple properties in a llc and one under performs and you have financial issue and that property gets foreclosed on then that liability will carry into the other producing properties.

What matters is that before you jump into renovating a property, take a realistic view at the amount of increased cash flow a repair will likely produce based upon investment in time, effort and the monies required.

A commercial (income producing) property that is producing NO INCOME does not have as much value as you appear to be assigning to it.

Profit, profit and profit.In sufficient amount and percentage, produced quickly enough.I specialize in lower priced, $25K-$55K purchase price, FMV of $55K-$90K resale.

When you sell your option or otherwise recognize the profit that profit goes into the IRA.The key being that with an option you can get the same leverage effect without needing the IRA to take out a loan.Any contract that you can later sell for more could produce the same results.John Corey

Which is how much income the property produces compared to the debt service.

Thanks for the info Les - and I knew about bidding on HUD - i was being incredibly optimistic. ;-).

I want (probably) a nice single family residence (3/2) in a middle class area that will produce a dependable, constant, hefty positive cash flow with good resale value!

There are many homes in certain parts of town that might produce a greater return for my investment because the homes themselves are not too expensive.

I was unable to work in 2005 & 2006, so I cannot produce W2s for the last two years.