Also, if your seller cannot post bond and its determine one is required by judge, your seller will only get limited powers and your intended sale is now subject to overbid in open court.Lots to know; lots that can go wrong, and much to learn about to control and work these deals.

Once you have selected specific areas within each of those markets, determine which one has the higher likelihood of finding motivated sellers. again, flipping isn't a hobby, because - unlike buy and hold - you absolutely have to get close to the 70% rule to make any money.

There are several factors at play.First off, you need determine your max price before you get caught up in the emotion of the auction. 

My question is how do they perform the due diligence to check out a property to determine if it is a worthwhile investment ?

I think you are best to call the city and find out how helpful they are or are not and that will help you determine a course of action. 

From a tax perspective, the activity determines the deductibility, not the underlying assets.

As far as pros, you only need a credit score above 600, enough money to cover 20% down plus closing costs, and for the property you are buying to have a projected rental income (as determined by an appraiser) that at least equals, if not exceeds, the projected mortgage payment.

With REITS, the actual distribution amount determines how much you are taxed...as they would be considered dividends.

Having common sense allows us to determine **** from gold.

Also how would I determine comps if there are no comps from this same area.