However, if there did not exist enough comps, I would use it under those circumstances then adjust accordingly.

I suspect my system and risk tolerance is more a product of my own individual circumstances than anything else.

You can show insolvency or might qualify for no phantom gain.The seller might not really want to sell and listed for a short sale as a delay tactic.If a commercial property they might be trying to squeeze out a few more months of cash flow before walking away.Could be a ton of different reasons depending on circumstances.

Actually, there are several circumstances where HUD will return part or all of the EM if the buyer is an owner occupant.

In general there is no market for notes with less than 600 credit unless there are mitigating circumstances like a larger than 20% down payment.

Under different circumstances I'd be interested but like everyone says lending to a friend bad idea.Any ideas what terms he could get with these properties as collateral?

I'm having a much harder time trying to model the tax savings under my circumstance.

And have, in similar circumstances.

What and when were the circumstances of the purchase?

Rent could be 2100-2400.We don't have 20% down to qualify for conventional, so we're looking at FHA with 5% down; Monthly payment will be about $4,200.So, if our circumstances changed dramatically (we don't anticipate this,) we'd be able to basically cover the payment with the rents, though it wouldn't be positive cash flow right away.Does this sound like a smart way into the market?