If you are talking about $50K properties where you have close to zero equity the LLC costs would be too high.More practical is to define a level and then create a new entity when you get to that level.

Of course the agent is for it, for the same reason the insurance agent says whole life insurance is so good.Look at it this way, if the policy costs $300/year, ON AVERAGE the costs to the homeowner has to be less than $300/year.

.- In effect, Mike's net Tax obligation would be zero (until the property was sold), and Joe would get an income of $200 per month.

Always get added as "additional insured" on the sellers fire insurance policy.

Have zero experience with foreclosures/short sales/auctions, so any help is appreciated.TIA

If you as the seller can negotiate to have your buyer pay for the tiotle policy (which I have done in the past) then all the better for you as a seller.

If the deal only works if you allocate zero for property management, which is what you're saying, then its a weak deal.Jon

It is priced well under it's appraisal value and needs zero work, all new everything.

Almost political or close to the macro economics.Based on the recent posts the housing market is but a drop in the bucket of fiat money, monetary policy and the evils of governments in control of the economy.As RE investors how do people expect to make money even if they believe most of what has been said so far?

It is entirely possible that an owner can be current on their mortgage and still lose the house to an HOA.BUT... the new laws in Texas give the owner the right to redeem within 12 months of the sale... with ZERO interest.