Operating expenses include taxes, insurance, management (even if you do it), maintenance, advertising, utilities (at least during vacancies), capital expenses (although not technically an operating expense), entity maintenance, legal fees, evictions, court costs, evictions, damage done by tenants in excess of the security deposit, I could go on and on.At any rate, you left out all of these expenses, which means your negative cash flow (even with your interest only loan) would be a monthly LOSS of about $768 per month (over time).Good Luck,Mike

Maybe there is some legal issue.

Nevertheless, I find it very troublesome the feds can push to modify existing, legal contracts because one of the partys is having problems.

A trust much like a corporation is a "jural person" it can sue, be sued, it has a separate tax id number and is for all legal purposes a separate and distinct entity from the person who is a party to the security instrument.

I told her that legally, she would probably have to evict him to get him out.

If you are serious about landlording and make it through this and want to keep with it, buy the book "Every Landlord's Legal Guide", it's a MUST have book for landlords (look it up on Amazon).

Yes, definitely make sure you are covered legally.

.), he can probably even get you the names of the homeowners.Good luck investing, keep it legal and let me know how it works out !

Mikeit is an option thats still on the table. i am not sure how people are in this market about lease options and contracts like that..plus alot of my contacts would be through MLS b/c i have no foundation, help, or contacts of my own so i would also be dealing with "regular" agents who don't quite understand the process and won't be able to give the seller an accurate idea of what the heck is going on. i need to first find out how to have no budget but still find sellers in preforeclosure. i need to find the business/legal papers and subscribe to that although i am sure the other investors have that lead as well. another idea that i saw through Armando Montelongo's book was to contact divorce and insurance lawyers to tell them I am interested in buying their clients homes.

You can do that by simply running ads, going to that county's assessors office and asking for a list, subscribing to that county's legal newspaper, going to banks and asking about homes in default, etc...