I think you may end up LOSING money.

She claims, in the real world this doesn't work and that I will lose big time if I buy in low income areas even if there is great cash flow.

That isn't because of agency laws, but because you are have a very high chance of losing the deal without a written contract.How you "skirt" being a broker is that a wholesaler has an equitable interest in the property via a contract to purchase the property.

And, I don't think Cerberus should get a dime - they made a bet and are losing (although, their lawsuit against Daimler argues they were given misinformation).

Therefore, I would not excessively rehab a property if it is going to be used as a rental, especially in the price range that you're talking about.

You'll lose your rent credit, but you've collected the $200/month.

If you buy that condo, and then have to sell it a few years later for the same price, you lose 10%, $25,000, just in transaction costs. 2% on the front end, 8% on the back end.

Like Jeffrey stated if you follow a set procedure you will very rarely lose.

The results are that they do not know their true costs and in fact are often losing money.

But if the renter elects to walk away from the house after 2 years without buying it, he loses the $5,000.