This gets you 50 % of where you want to be, while simultaneously apprecating in value, not to mention the tax shelters that would become a major benefit to offset your income.

You wouldn't want to have them redeem after you pay for the foreclosure and payoff the taxes, that might not be an attractive gain.  

The better question to ask is what is the benefits of having your license vs not having it and does it make a difference.

To acquire the property, the buyer will need only $702,000 in equity plus amounts sufficient to fund the seller' s replacement reserve, insurance and real estate tax escrows (such escrows are held by the lender for the borrower' s benefit).Would that mean you only need to come up with the $702,000 to purchase? 

However, it is indeed a way for those who are just getting started and needing to build a capital gain to do so in order to pursue other types of REI .

If I gain experience in the construction industry it will give me a wealth of experience and knowledge that I will lean on to reach my REI goals.

Our goal in real estate investing is to gain a substantial amount of passive income to allow us to work fewer hours at our jobs and more hours together doing the things we love. 

At 2% Net Cap Rate - to make 100K a year - the property has to be ~5MM.And I'll need 25% of that as down payment - 1.25MMThat's not easy for me - nor very fruitful.So, I wonder whats the point of this.In contrast - if you look at flipping houses from a foreclosure - its not uncommon to see routine gains like 50K on a 500K asset.

We have tenants we gained with properties like that currently. 

Please keep us informed as to how this proceeds, I think many people will benefit from this story in the future.Michael