That is, if you assume expense are 50% or rent, or use the actual expenses - which ever is higher, and deduct the expenses and debt payment form the rent, do you have cash left over?

Weathie: Thanx for the response, you are totally right, this property will never be a winner in terms of cash flow and its keeping all my money tied up, I guess it's just hard to sell it since it's been in the family for over 20 years (you know how it is, emotional ettachment lol) As for the triplex thing everything was done by the book, 3 appartment approved by the city and ive got the right zonage so no problems there.Here's my financial situation : I have a full time job earning me 43 000$/year plus benefits, I've got no debt whatsoever, and I don't have any savings except for the money in this property, a small 3000$ in the bank and my retirement account wich I can't touch.

So this act outlaws deficiency judgments as well as taxing debt forgiveness?

Ask yourself what would happen if China wanted to collect on it's debt: oil over $200/barrel, depression, and a complete bankrupting of the nation.

Educational debt is "GOOD" debt and can be paid off slowly due the the very low interest rates.

If nobody else bids, they get it for that price, and the debt to the previous owner is wiped out.Jon

But...and those of you familiar with Dave Ramsey can appreciate this....they have PILES AND PILES of cash with no debt.

I wouldn't think it would change my debt/income ratio since I'd have a positive cash flow from the rental income, but I would still think my ability to pay a loan back would be a greater risk.

An attorney can “levy” assets to collect on the debt.

He has stated that his main objective is to assist me in eliminating my personal debt and get me into my own home w/in 5 years, sooner if possible, and that profits on his end are secondary to him (I know, amazing friend).