Just my opinion as I see it, my feeling is that if any reo is to be purchased and the bank selling won't allow hard costs with a profit of 20% to be made, let them eat the property or build in a longer holding cost in the purchase price.

To get started on the cheap, you might want to take a look at mobile homes to build up your initial investing nest egg.

I spent about $2300 but then I realized each day this thing sits, I'm eating $35/day (forgot I need to factor in my utilities during the vacancy).

Yes you can set a cap etc. on monthly water bill in some states and try collect the overage but many times they do not pay.Then you are left with eating the cost or evicting them over a small amount.

While they were eating I played a Power Point presentation of houses I had fixed up (before and after shots).I then had a presentation that I went through describing what we do, who I am, how they (lenders) are protected and types of return.I raised a considerable amount of money - 6 figures.You can prepare this all yourself.

Eating/cooking is not optional for most people.

@Steve L.Could I be so bold as to ask approx. how much someone like you mention is costing (I read the entry on your website about the process and I'm intrigued)I have a man who is very experienced (managed 98 units, licensed arborist, competent carpenter, plumbing and electric and roofing, intelligent, independent, etc. though he probably is a little perfectionist and might eat up some extra time that way) but he's self employed and billing at (an agreed upon) $27 per hour. this is higher than my main carpenter but he is much cheaper than my roofer, plumbier, etc. so it can even out.

Eat the costs I spent in trying to close.

Selling costs will eat all that equity.If you mean a $100K house then you might be able to do a cash refi and get a little of it.

I may just not press him on the rent and hope he moves out as planned and just eat the cost rather than go eviction route.