A financially distressed seller can get into all kinds of trouble which could result in having additional liens come against the property (back property taxes, irs liens, child support, water/sewer, etc), or they could lose the property altogether by foreclosure.

You can have a perfect investment property in a perfect market with perfect numbers and still end up losing money month after month if the folks you trust to rehab/manage/market that property drop the ball.

One concern I have is that it has a hot water baseboard heating system compared to forced air.

We experienced this first hand from our buyer pool and sellers wanting to list their properties high.Price drops out weigh price increases these days BUT we are in the holiday season so first 2 weeks in Jan I think will answer a lot of these market questions ESPECIALLY after Jan 10 when further mortgage restrictions kick in.

Most of your deals will come from a hand full of people but don't drop or ignore the ones who are not bringing you deals.

If you buy a house to rent out you will inevitably need a slush fund to pay for the unexpected hot water heater failure, etc.Once you get a few wholesale deals under your belt you will understand the market better, have met a number of other investors(check out your local REIA to meet them) you can learn from, and better understand alternative methods of investing to move forward.Keep asking questions and reading posts on BP and you'll have a wealthe of knowledge.

Maybe I'll dig for that HUD phone number to ensure this guy doesn't do it again Please drop a dime on the guy.

It seems the toilet was leaking, we asked him to turn the water off from the water supply and it stopped leaking.We will be meeting a plumber at the house tomorrow to see what is going on, from reading some posts on here, I have to mention he is a larger person, so he may have unseated the toilet (?).

Should I continue to buy these premiem type homes that rent well and cash flow great but keeping dropping $25-$35K cash per home.

They have been dropping the list price every so often.