A Cyclical market is subject to much wider swings in pricing.Example: I would bet dollars to donuts the rural markets and places like Topeka Kansas saw some effect from the national run up in home prices before the sub-prime but never the same wide swings that Florida and California saw.The big advantage of a linear market is much less downside price risk.The cyclical market on the other hand IF...IF you can time it right will yield nice capital appreciation but of course has higher down side risk.

I am mostly interested in finding "subject to" deals where I can acquire rental properties in reasonably good shape.

Does the subject have special assessments?

Welcome aboard @Shawn Young Low Equity Deals or a little bit underwater houses, if you are acquiring to keep, shoud be Sub2 (Subject to existing financing), now you have the deed.

Now, I'd think the purpose to the restriction is to protect the bank, perhaps more to the banking system and the tax payers that end up picking up the tab in (being another subject) that there is no collusion between other parties out there of having the bank sell a property at a much lower price than what is reasonably seen as the fair market value for the property.

The purchase of the property may be declined at any time, but may be subject to earnest money forfeiture. 17.

I've seen a few mobile homes where the seller is asking 4k or less and I still have to say no because there is so much in repairs.A good basic contingency clause is to include the "contract is subject to buyers and partner's written approval and inspection within 14 business days."

The property that was the subject of this thread was the one I purchased.

HMLs are collateral lenders, some don't care what your credit or net worth might be.As to pre-approval, sure, no problem, you're pre-approved subject to acceptable collateral being assigned.....wink and a nod ;)

@Scott VandenBerg , I'm not very well versed in this subject but I do know two people who do this every week.One thing you need to be careful about is that the bank can still legally come after the new owner for the balance of the loan after the sheriff's sale.