I should have reviewed that before I hit reply.

It sounds like you are just about set to hit the ground running.

Some get burned and some hit the jackpot.

We hit one snag so far, when we turned on the water we discovered water pouring into the garage from the bathroom above.

Ok so I currently live in the Northern Virginia Area.

Hey Guys,A smart investor would not attempt to calculate profit on a property based on appreciation, but taking that into account, broadly speaking, would it be a better move to invest in a market which has seen a large drop in prices such as florida/california, would a more linear real estate sale history of some of the more northern states in the US which have only seen small gain/losses be better?

I do a lot of rehabs in northern california.

I re-read your reasons "payment plan" was in there and it hit me.

I can just insure for what it would take to pay off the loan (and a little more) provided I'm within their square footage limits.Basically, I was getting hit from State Farm to insure my rentals up to what it would actually cost to rebuild.

Even if the LTV is right their lack of experience can tie up your money, cause you not to churn for points, and at best you might not get any payments and break even or lose money.I can see places like Cali where if the money is strung out in a climbing market the HML could come out ahead but also could be left holding the bag when the market hits a bubble and many loans drop in value at once.I think the best HML's talk to you on the phone and share their experiences.