I fiquared that would leave me with about $3,000 cash flow if all condos are rented.I've owned rentals in the past and want to get back into the market.

I understand I have 3 years from the time I leave the property to still do this.

But I can tell you one thing, they are coming after any asset you have....They are looking for you to get some "skin in the game".Then again, she could just be saying that to keep the money coming inYou got that right.

One CPA caller had a good idea--he suggested the banks allow people to pay principle only and double up the principle for a few years so they can build up some "skin" in the deal and add an extra year or two on the mortgage to make up the interest.

The biggest mistake you can make right now is paying cash for props if you want that cash back within 6 mos.Even after 6 mos you will be limited to the amount of cash you can get AND the LTV will be a lot lower than you are expecting often leaving 30-40% of your cash locked in that house.Always have a note and deed of trust on a prop when you purchase - not one of your companies but maybe a friend or colleague - so that when you are refinancing you are paying off debt.

Also, homeowners in default vacate their houses for any reason they see fit...mostly because they are done caring about the property...they have to leave anyways, why not move on with their life before they bank evicts them.It is also no concern of the investor why the homeowner chooses to move out.If you can swing it timing wise it is a good deal for several reasons...the house doesn't sit vacant....you have somebody living in it that knows the deal (you disclose to them exactly what is happening and charge them a monthly rent below market value)...they can show the house for you if need be...the utilities get paid...and the investor can make some positive cash flow while negotiating...let's stop pretending this is hurting anybody...and most of all...dont make me think for a second we are concerned about the lender losing money because the investor is profiting....its the homeowner in default on the hook and nobody else.

That's $1200, less 40% (optimistic) for expenses leaving $720 NOI.

However, in my area, that leaves TONS of room to drop.For example, the median home in my city costs around $200,000.

After setting up an S corp, can you leave money allotted to maintenance in the comapany and not take them as profits at the end of the year even if you never spent it?

If I did refi, I would only take 40K leaving me with a 95K loan and a 730 payment.