It's best to get your investment goals down on paper first.

And I know what a short sale is and what papers may be required.

You will complete The Power of Paper: Secrets of seller financing and the business of notes ready to:Qualify and gain a comfort level with the buyer prior to the sale by obtaining as much information about the buyer as possible in order to ascertain their ability to make payments and honor all other covenants of the loan documents now and in the future Structure the sale and resulting note and security document in a way that is legal, provides the most protection, flexibility and marketability and facilitates an exit strategy for the seller in the event of changing circumstances; Develop a system that will provide organization and detailed and accurate records relating to the loan and the borrower.

Being good with numbers will indeed help you as youput pencil to paper to work out the details of a prospective deal.

Now I started out with a piece of paper and pencil so don't complicate it too much.

Well you advertize the unit at the HUD office and in the paper or whatever you are doing as HUD acceptable.

That puts it at $115k as a solid investment (on paper).

Rick H.Maybe those that sell yellow paper!

Realtor says since their is a lien on the home, that I need 2nd mortgage to sign papers to let us pay them less then what owed to them.

On paper, the cash flow looks better in the worse areas, but I've found that over time location wins out, with easier management, less turnover, better tenants, and especially appreciation and more options for resale.A caveat is that if the lesser area is gentrifying, which you say it might be.