After I get some experience and know what I am doing, I'd like to implement a hybrid of buying distressed properties, fixing (forced appreciation) and holding for the cashflow.

I will thus be forced to buy properties 100% cash from then on until 2 years from now, when I can count my rental income towards new mortgages.

I guess the point is the same, S.Sales will become less of a factor and more folks will be forced under water unable to sell providing more REO in the end.

I would assume the due on sale clause does apply.My LLC has a 4.25% rate on a 10/5 arm amortized over 20 years.

Remember you don't have to own a property to control it.Go to IREM.org search for ARM certified property managers call 5 ask them what parts of the city they like/dislike and why.

If you're concerned about operating legally, my first thought is not to temp the watch dogs in the first place, having a deal blow up with a buyer is likely, if he shows up in court, (and no, he doesn't need an attorney like a guru claims) your deal will go under a microscope, why even go there if you're not forced into that position?

I am an officer in the Air Force stationed at Eglin.

I have been in the work force ever since working as an outside sales rep for a car manufacturing distributor.

Not only can you get mud on your face you could lose money for someone, it happens, so responsibility for decisions is theirs, not mine.It forces them to think, my job is to calm the fears and inform as to general and prudent practice.Start telling someone to put 20K down and then they find they could have gotten it at 10K won't work very long, if it got to involved they might look to you for the errors of their ways too.Keep yourself out of the deal.......or get involved and partner and share the risk and reward, otherwise stay out of it. :)

Is the LL forced to come to terms?