My sister sent the security deposit accounting back to a student/tenant and the mother called and said she's going to sue her.

Make sure you have a "sufficient" security deposit.

. ($350)One is on social security and is disabled – other pays rent cashiers check ($275)Unit mix 2 x 2 bd/ 1 bth Here are the numbers:Price $26,000 (they will only accept cash) I can come up with about 10k in cash but would have to take a personal loan to cover the restGross Rent: $7,500 (100% occupancy consistently)Expenses –A) $1975 (owners claims with property mgt included)OR –B) $3000 (if I assume a 40% of rents =expenses) NOI:$5,525 (if use A expenses)OR$4.500 (if use B expenses)Even if I was to 100% LTV at a $26K price at approx 7.5% Annual Debt Service would be: $2340So Annual positive Cash Flow would be: $3185 (if expenses A – owner claims) (or $265 a month)OR $2160 (if expenses B – using 40% of gross rents) (or $180 a month)Repairs known (before property inspection) needs new exterior and interior paint (additional $1,500), Roof is approximately 10 years old The money seems small but consistentDuplex Located in Buffalo, New York There have been a lot of foreclosures in that area – some I can tell were investorsOn the plus side, these tenants don’t seem like they are going any where soon.

Real Estate Agents and Short Sale Investors do not mix simply because the SS investor has no security that his/her offer won't be topped by somebody else who comes in 2 - 3 months after negotiations have started.The REA's job is to look out for the best interest of the client so they are more than happy to present a higher offer to the seller and why wouldn't the seller sign it.

Moya isn't registered to offer securities, but that is for the authorities to determine, not us.We were forced to go to the authorities and we are also going to be filing a civil suit against him, if only to make this matter public to spare others from the agony that we have had to endure.

I would like a little more thought on this…as to how does the whole thing work and how can we invest properly in pre-foreclosures to earn secure profits.

If you need to turn your property quickly, you probably shouldn't to go in for over 50%ARV.If you don’t already have one find a mortgage broker who is familiar with all the grants and down payment assistance plans in your area, can do refinances with no seasoning, and has a very aggressive credit improvement plan.

Might anybody have a sample contract that a bird dog might use to secure his/her interest in the property if the investor purchases it?

Pursuant to Section 3712 of the Revenue and Taxation Code, the tax deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale, except:• Any lien for installments of taxes and special assessments, which installments will become payable upon the secured roll after the time of the sale.• The lien for taxes or assessments or other rights of any taxing agency that does not consent to the sale under this chapter.• Liens for special assessments levied upon the property conveyed which were, at the time of the sale, not included in the amount necessary to redeem the tax-defaulted property.• Unaccepted, recorded, irrevocable offers of dedication of the property to the public or a public entity for a public purpose, and recorded options of any taxing agency to purchase the property or any interest therein for a public purpose.Any federal Internal Revenue Service liens that, pursuant to provisions of federal law, are not discharged by the sale, even though the tax collector has provided proper notice to the Internal Revenue Service before that date....according to that, California tax sales doesn't seem pretty free and clear to me.

I don't want any legal trouble up front.My other concern is safety/securing of the site.