I bet that your buyer on that one figured the ARV to be more like $130K and the repairs at closer to $10K (Assuming that your assessment of what needed to be done is close) and that gives you a MAO of just over $80K.It seems super unlikely you are presenting any deals that have $60K profit in them.

There are also community responsibility aspects that ensure you're allowed to stay in business.Next, understand too that RE, especially the internet, is full of promoters having motives to profit from mentoring, coaching, selling books, programs or other materials that are hyped in marketing products or services.

Anyone with internet access can see/buy the same properties I buy.

I bet we have a guru type business behind this, just guessing, teaching someone an approach to "help" people facing foreclosure.

I think the combo of having a good respectful tenant and a manager is your best bet.

Since there is no approval on the second mortgage, you technically do not have an enforceable contract (all said assuming standard SS addendum is used - nor am I an attorney nor do I play one on TV or the internet).

I have an opportunity to get a mortgage for the first time ever (due to a confluence of positive circumstances such as mortgage rates, my DtoI ratio, my wife working, etc) and am inclined to get two or three, thinking that a good SFD is almost always going to be a good bet if it flows and doesn't need a new HVAC or roof for some time, and even if housing prices drop due to major economic fundamentals going awry such as a stock market bubble burst or our debt problems coming home to roost, or the middle class going the way of the dodo bird ...

http://www.bloomberg.com/infographics/2013-12-20/blackstones-big-bet-on-rental-homes.html

I believe insurance is your bets bet against liability, next to good management.

I'm looking for ways to get involved and a lease option seems like my best bet right now.