I'm looking at home prices in Globe Arizona and it seems like cash flow would be much higher in that market, and its only an hour away from me.

How long -- Time on the market and price (reduction) are close cousins -Price softens as time moves on and motivation and reality is realizedEverything will sell at a price -The first thing I'd want to do is get the history of the property - how long on the market, why is it vacant - what's the reason for selling - is it listed - look at listingWhat is the mortgage balance - is it current or in the arrears - What other liens or obligations are on the propertyHow many owners - decision makersWhat is the commission - will agent splitAre they open to a reasonable and creative offersDo they want any profit or to just get it out of their nameCan down payment be paid over time -How much paper with they accept - delayed payments - principal mortgageWho is the decision makerHow fast do they want to settleEverything is negotiable - CONTROL IS KING - learn how to control real estate - it is a short cut to cash flow - it is the best way I know of assigning properties.Who controls real estate - An agent with a listing agreement (treat them well - they are in control for a period of time)An accepted option agreementA buyer with an accepted contract of sale with contingencies

Also, of course, there is value in having your tenant pay your mortgage and provide you cash flow.

This is all assuming I am able to find a property that cash flows sufficiently to where my living expenses would be paid for by the tenant I rent the second unit of the duplex out to.Sound insane?

For example, in my market I know a 1.3-1.4% deal would start to make sense from a cash flow perspective, depending on how the utilities are decided up, etc.

If the agent calls me (they are usually slow to follow up) I will make a reasonable offer subject to inspection and a study period.Everything is negotiable - CONTROL IS KING - learn how to control real estate - it is a short cut to cash flow -  it is the best way I know of assigning properties.Who controls real estate - An agent with a listing agreement (treat them well - they are in control for a period of time)An accepted option agreementA buyer with an accepted contract of sale with contingencieshttp://www.realtor.com/realestateandhomes-detail/M...Charles

If you have a deal which will give you cash flow with enough margin that you can hold it through a downturn, and you have the courage to hold it, then perhaps now is the time to invest.  

If you're planning on buying more properties, the 30 year fixed might make sense, due to cash flow.

Make sure your cash flow can cover the mortgage and the payments on your HELOC (assuming this is the way you are tapping your equity).

Doing the math I figured with a 4 bd home I could rent out each room for about $500, $600 for the master bd, is $2100 gross rent minus the holding costs of utilities, mortgage, cap ex, etc, (1700) = $400 net cash flow (calculating if I didn't live in it, if I did I would be paying out of pocket $100/month to live with 3 other people).