I know that house will need some work after she moves out, especially because she was smoking in master bedroom at one point (stopped after I found out), so I might have to spend money to get the smell out among other things.

In most markets, when the price goes up, so does the rehab budget, therefore percentages should stay the same, as any surprise major work like a new roof is going to be more expensive on a more expensive house.But in the market where I live million dollar houses can be small 2 bedroom bungalows that needs the same amount of work as a $200,000 house a couple of hours away.

Purchase price $60K (3 bedroom/1ba)Mortgage of $48K (7.125%, 30yr)Taxes $2015Insurance $600 per yearMaint/Expenses approx. $1500 per year (could be less, property is in good shape)Rent would be at least $900 a month (property is currently vacant, tenant could potentially be signed to a lease prior to closing)NOI - Gross rents $900 - Operating expenses $343 = $557 Cash Flow - $557 - $343 (mortgage) = $214Thanks,Aly

Its a penthouse style unit with 2 bedrooms, 1 bath - around 1,000sq ft.

BTW: "you have to sell quickly in order to raise your cash margin back up or is there some creative way you guys refi your cash purchases right after closing avoiding the seasoning restrictions?"

There are many creative ways to do deals and/or make money in real estate.So feel free to call or email me anytime and let's discuss opportunity.

Convincing them that they should short sale with you coming to the table with 100% financing might be a large hurdle to overcome unless you are creative.

....when your brother sells you a 4 bed room house for $15000 because he is sick of working on the bathtub...

I was excited to see your post because I wanted to meet someone that knows what’s happening in this area and understands different creative real estate investing strategies.

Hi...I'm a 24 yr old female living in NYC...Ive been wanting to get into real estate investing for the past 1yr and a half...I'm really anxious to start....Im planning to buy a 1 bedroom, 1 bathroom condo next summer 09.