people in default have already gotten many many letters from their creditors and now there will be many many letters from individuals trying to buy their home.If they wanted to sell it they would put it on the market  .. these particular folks usually wait till the last minute to make a decision or in many cases have no real equity so its not a deal anyway.. while you can try these I think you will find the return by just sending out mailers will be pretty low. these are bought by door knocking and establishing reporte'  at least that's our experience of doing this for a few decades.  

It also has been quite an exercise in sweat equity, and learning to see everything from the guest point of view as opposed to our personal biases.Hang in there!

Sweat equity on painting, landscaping, general curb appeal What was the outcome?

The real experienced investor may not want to put much down but want an equal or better than 50 pct equity.

If you find a cash flowing property that you're getting for a steal, the bank may look more favorably on it and analyze the deal more than the borrower.  

I am looking to leverage my equity some by selling some paId off single family homes I have and 1031 exchanging into bigger multifamily complexes.

I would narrow my criteria, are you going to target pre-foreclosures with high equity, absentee owners, probate, tax delinquent owners, as in any business system there is a chain of steps, and if you aren’t getting you’re desired outcome, work your back in the chain.

I am thinking of purchasing a $25k lot that i can fit for sure a small 4plex on in a city that is surrounded by heavy industrial plantsMy plan is building a 4 plex with 1 room, 1 restroom, small living room, tiny kitchen, and tiny utility room roughly 775 sqft a pieceI know for a fact i can get contractors in here rented out paid water and trash @ 950$ a month (possibly more if weekly and if i do all utilities)Why should i  OR should i not pull triggerRoughly 25k for lot + 200-250k to build  = a 225-275k loan @ 15 years @ 5.59% 275k loan 25% down1695 note paymentLets say 400 taxes 400 insurance (over estimating)2540 payment - 3800 rent = 1260 cash flow minus water and trash Basiclly 200-250 a door @ 15 years (trying to build equity fast)Im doing 15 years cuz i know i can walk in to my favorite bank and they’ll Loan this out to me fast basicly pre approvedNever done this before but already getting bids on contractors and this is what they told me roughly building cost wise (im more experienced in SFR’s)

I used private money and my own cash until I was able to secure a primary residence with a lot of equity.

That said, with rates going up home sales may slow, meaning future prices may be lower (you lose equity if you buy now) but there will also be more renters.