Before I get too excited, I have some questions and ask for any tips for a newbie getting into the business.First: I have spoken with many financial planners and they say to have 3-6 months worth of bill money in a savings account before even venturing into investing, currently My wife and I don't even have one month (we used our savings to pay off all debt).

Talk to a CPA.I think if you go too far into the weeds with a cash out refi and sub2 you will lose them for sure. 

Hey Morris - in South Carolina where I invest, a tax deed "wipes out" the mortgage and that lender loses their money because the property taxes are in superior position to the mortgage.

I would hate to lose this deal over 2k but feel like he is being shady with his agreements and its sending up a lot of red flags my way.

Correct other than you lose whatever capital you have in the deal.. and you may get sued by the person whose credit your going to trash by not paying..

Some will come along and say start a formal eviction and legally do things by the book and lose money for the next 90 days waItIng ..stIll others will come along and say pay the guy cash for keys strategy to persuade hIm because Brandon says it’s a good idea in his book .

Keep in mind, you don't "lose" these losses, they're just suspended and carried over to future years.3.

Sometimes this leads to astronomically high prices - if it doesn't sell at the high price point - the contract just expires, so the "seller" has ventured nothing and lost nothing.

@David Zheng, even with your scenario, what if YOU are the one to lose your job?

So, if I were to sell it by 2020 (within 3 years of turning it into rental), I pocket the entire capital gains on the property (roughly $65k) but I will instantly lose my $750/monthly cash flow from rent as well as all other tax deductions and depreciation I could benefit from each year.