Jaime,That is a great amount to invest in real estate, however it is vital to ask yourself a few questions before you start.Questions I would ask myself...1.

Good point Ben, investors should know that extra expenses like owner paid utilities are not included in the expense ratio, however, one could argue that the rents could be slightly higher on owner paid utilities, thus offsetting that expense or a portion thereof.

It does make me want to go Donald Hendricks' route and devote a portion of my life ruining theirs but that may be taking it too far.

They assess investor houses at 6% of value instead of 4% and owner-occupants don't pay the portion that goes towards the school board.

While 6 months of payments is good, I would not let a good deal pass because I had less; however, some reserve is vital.

I think you can get into realestate though without having to pay down a large portion of the debt by buying a 2-3 flat, but not just any 2-3 flat.

I prefer to keep the mortgage portion below 50% that way I have the greater ownership but that is my own personal take on it and neither right or wrong.There's nothing wrong with 25% down and mortgage the rest provided the numbers work to cover fixed expenses & payments and still leave you with at least $200 in cash monthly.Keep in mind there are many other ways to invest in real-estate that are known as "armchair" investments too.

Look up the transfer tax exemptions on the PA Dept of Revenue website so you understand what portion of the transfer would be exempt from transfer taxes.

But you do have to recapture the depreciation you have taken each year so you will just be taxed on that portion.

As for my bank, there is a possibility they will want us to pay back a portion and that is why I am waiting for it to go through before I put all my money to use.