Then about 2 years later they started getting behind on our mortgage, then we found out they were behind in the first mortgage as well...long story short, we had to foreclose on the note we held and pay the first to keep them from foreclosing a senior lien first...the day of the sale at auction, we were served with a notice that they had filed for bankruptcy, which stayed the sale and the auction was voided.After getting an education in foreclosure, I now had to learn about bankruptcy.Since we were now living in another state, we had an attorney handling it all - I was never comfortable leaving things to other people, especially when we had a lot to lose.

I knew if I could handle that, i could handle most rehabs.  

Even after moving out the cash flow should be positive enough from both units so that you can afford to handle all the long term maintenance and tax increases and still make a profit.Betting on appreciation is risky as far as I am concerned.  

-How do you handle a tenant who is NOT making repairs that their are supposed to make under the agreement?

Baseboards trim and doors (prints around door handles is gross), ledges, Windows screens & frames, sliding door tracks, etc. caulk everything fresh clean lines pop, fresh paint, patch all holes.

--by the time escrow closed, I was a landlord.imho, Robinson handles the human side of landlording well (along with technical and legal issues), while Nolo is the gold standard for in-depth, up-to-date legal stuff.Meanwhile, do get your head examined.

Hit some bumps in the road along the way needless to say that deal fell thru as I was out to sea and couldn't handle the issues that were popping up.

Don't get me wrong, we've done plenty of dumb things that cost us money but we've always had the resources built into the deal to handle it.Which leads me to my second point, @Paul Timmins gave you some great info, follow up when you can.

Hello BPers,We are new to REI and also have limited funds. My hubby and I are self-employed and so conventional loans are a challenge for us. My friend, who is in the military, is interested in becoming RE partners/in...

They bid the interest way down below the starting rate in states that handle it that way.