Michigan has a 6 month redemption period so typically what we see today at sheriff sale hits the MLS in 9 months.

If you use the 50 percent rule, which is probably about as accurate of a crystal ball as any other method (and will still not hit the mark on many individual years) then, of your gross rents you would have 1050/month to count toward your debt service (principal and interest) and the remaining toward your cash flow.So, I can't tell what percent of your PITI is T&I, but I would guess it is around 300/month.

I think youre speaking of strategic plan- You have hit on EXACTLY everything that i have gone over in my head numerous times and have attempted to try and explain to others.

Andy,The markets that got hit the hardest now have the toughest competition.

I have been around a lot of condo projects and I've never seen one that has run efficiently and not had special assessments eventually come up.

The broker that was assigned by by primary mortgage servicer said that only 30% of applications are being accepted by Fannie based on what they are seeing.There is talk of a HARP 3.0 that might hit later this year for non-Fannie/Freddie backed loans.

I can not figure one good reason to partake, for any investor, but I think Joel hit it right on the head.

Maybe approach them and see if they are willing to carry the financing till the end of the rehab and till you hit a set occupancy number, then refi out and pay them off.

I can see values dropping a bunch but for the cash flow rent rates to drop by 40% something drastic had to happen in the area.Either your property was in nice shape and now it is trashed and instead of pouring more money in you have reduced rents over time OR the area has been hit with massive foreclosures and new purchasers reduced rental rates to rent up fast.I like the idea of the local investor to take it on.I never buy 2/2's unless it's apartment buildings.For resale 2/2's are really hard and do not hold value as well as 3/2's.Some areas it might make sense but not for me.

Steve L hit the nail on the head...in my market there's about a 5% bump in appraisal for condition.