@Jose Castillo thanks for the continued motivation!!!

To Kenny:  I like your idea of offering to return his security deposit sooner if he lets me come in and paint - that is a good motivator!   

Tenants aren’t generally motivated to pay on time unless there’s a financial incentive to do so.

The fear motivates me to never let that happen.

I suggest properties occupied by investment grade public companies or strong franchisees/operators of national brands with 10+ years remaining on the lease contract. 

It is highly unlikely that any other investor will outbid you at a foreclosure auction to acquire the remaining half of the co-owner's half interest in the property -but in the very unlikely event that someone does outbid you, then you'll have recovered the majority of your costs, plus interest and you'll get a new and likely better partner. 

Include a simple statement that all other terms of the original lease remain in effect unless specifically changed in this extension.

College student, Motivated to learn and grow.

3/5/2019Sherelle – thanks for the post / questions and outline Fyi – there are some conventional loan programs that allow a 3% down payment ….I would recommend using this program versus a fha loan program if possible …this is because with a FHA loan the monthly mortgage insurance remains with the loan permanently and with a conventional loan – you should be able to eliminate the mortgage insurance in the future ……Also – if you use a FHA loan for the first home - using a FHA again for next property might be an issue …..you allude to this in your question #2Regarding cash flow analysis ….other items to factor in : utilities / property homeowners insurance ( this will be a little higher when you live in home and should decrease a bit once you convert it to a rental policy / are there any deferred maintenance issues on the house ( roof / furnace / water heater / foundation are the bigger tickets items to watch Definitely get pre approved so you know for certain what you can afford and also so you can begin becoming more familiar with the numbers …we can assist with this if you want - contact us Thanks and I hope this helps Dave Skow 

.+ REO with a motivated bank seller (assuming they will be dropping their minimum each time they put it up for auction?)