[EDITED BY MODERATOR TO CONSOLIDATE EIGHT POSTS INTO ONE]Check for Notices of Default at your county courthouse . . . get the homeowner's name and address . . . then go knock on the homeowner's door personally.If the home has equity you might be able to put it under contract and "wholesale" the property to another investor.f the home has equity, you might be able to negotiate a short slae with the bank, and find a retail buyer and create a small spread (profit).Bottom line . . . easire opportunity for profit if you can nab the property BEFORE the bank takes it back.oooops . . . sorry about all the typos . . . fingers not coordinating with the brain.TIP: Before you go knocking on the homeowner's door, take the time to learn about the foreclosure laws in YOUR state . . .For example: judicial vs. non-judicial foreclosure, foreclosure timeline, right of redemptionThen learn about all of the ways a homeowner can save their home . . . go to the door armed with KNOWLEDGE . . .Your first priority should be to help the homeowner SAVE their house . . . yes, you read that correctly, give freely of your knowledge to help the homeowner save their house . . .Most of the real estate investors who knock on homeowner's doors do so with the singular intention of profiting from the person's problems . . . and that is very obvious to the homeowner.By HONESTLY trying to help the homeowner first you gain their trust and confidence . . . if circumstances are such that they cannot save their house, who do you think will have the first opportunity to do some kind of deal with them . . . obviously YOU.If the homeowner has equity, you might be able to structure a "subject to" deal . . . that means you take over the homeowner payments . . . notice that I did not say that you ASSUME the homeowner's payments.But once again, don't screw the homeowner and agree to take over his/her payments if you have NO intention of doing so . . . because using the subject to technique the loan is STILL in the homeowners name . . . so if you don't make payments, you are damaging their credit.If you take over a house "subject to" there may be back payments and other liens to payoff . . . and if the homeowner has a lot of equity, you will need to pay the homeowner a portion of their equity . . . you retain the balance of the homeowner's equity as your "fee" for getting them out of their jam and allowing them to move on with their life.You do NOT have to qualify for a bank loan because you have simply agreed (in writing) to take over the homeowners payments . . .You need to be aware that technically the lender/bank could possibly "call the loan" . . . there is a provision in most loans called the "due on sale clause", meaning that if the house is sold or the ownership is transferred in any way, that the lender can call the loan immediatley due and payable.However, it is very rare that a lender will call a loan, particularly now that there are so many foreclosures, if you make the house payments on time the chances are slim to none that the bank will care or even notice.So what can you do if you take over a house "subject to" . . . there are many options:One, you can live in it if you don't already own a home and if you can afford to make the monthly payments . . .Two, you can sell the house to someone else for more than you paid for it . . . they can either cash you out and you make a one-time lump sum profit -or- you can have the new homeowner make the payments for a period of time (perhaps 12 to 24 months) while they get their credit in order, then they get new financing and pay you off as well as the underlying mortgage . . . in the meantime however, you make a small monthly cash flow (i.e. the difference in the mortgage payment with the higher purchase price vs. the mortgage payment the original homeowner was making) . . . this could easily net you a $200 to $300 per month differential . . .Do the math with the previous example . . . 10 houses at $200 to $300 net cash flow each . . . could net you $2000 to $3000 per monthYou would have sold the house to the new buyers on a lease option contract, so all maintenance and repairs would be at their trouble and expense . . .The downside you need to consider is what if the lease option buyer doesn't continue to make their monthly payments . . .

Some lenders are now requiring some length of time for ownership of the new property - seasoning - before you can refi, but you may also find a lender who will do it quickly.The downside is that HELOCs are going to be at a higher rate than a normal first mortgage.Another downside is getting overly leveraged, or putting your primary residence at risk if you investing goes south.Jon

I do a lot of sub-to deals, and find the hardest thing is getting the tenant/buyers to a point that they can "cash out" so you can get your "big payday" at the end of the deal.This market has a lot of good sub-to houses available, and due to the lack of easy funding, plenty of buyers, but the downside is that most tenant/buyers never get their "poop" together and buy.My suggestion, is look at sub-to deals like a long-term buy and hold, enjoy the option fees, and if someone cashes you out, consider it a bonus.

The problem is that the downside is also much bigger.

The upside of your current job looks to be that it's one you can bail on to take a RE related job with no downside.

Most are not highly likely but it is possible which creates huge downside for the relationship.

Umbrella policy's are so cheap there is little downside to buying one if you actually have the assets to protect.

One downside to section 8 tenants is they typically take longer than a standard tenant and you will probably see a month of vacancy if you do not get the unit listed soon enough. 

I'm aware of the risks and downsides to the markets, and out of state investing as well.  

Kay Kim One of the biggest downsides to condo's is the HOA dues which can increase dramatically especially if you have a poorly managed  HOA.