Minus the I/O payments, that is a total $315,000, or 31.5% ROI off of his initial $1,000,000 investment.

From personal experience as an out of state investor, I'd say investing in cheaper properties ($50k>), and getting rents in excess of $900/month in undesirable neighborhoods, does not reap the rewards that initially look great on paper.

., verify all door and window locks are serviceable lest the squatters move into your job site without so much as offering to pick up a paint roller.Then grab your sledgehammers and go to town.

You can always get a copy of the title binder at closing and have the title company "mark it up" (initial the elimination of exceptions that will be taken care of out of the closing - ie. satisfying liens, taxes, survey exception, mechanic's liens, etc.)

I could verify that the amount of money the person claims to make can also be verified, it will tell me if the person has only 10 bucks left in the account as well.

Don't assume this one can until you at least verify that he's competent and can keep on-schedule and on-budget with just one project at a time (most can't even do this).

Protect your initial investment, but don't go overboard.

For any paperwork that the seller needs to fill out, I write my initials small in one corner.

., they will send me a more detailed pro-forma, but after I initiate a relationship.

I initially had a co-insurance problem with an apartment complex that was partially burned earlier this year.