Your position in that deal is as a bird dog, NOT a wholesaler.

Using assumed rental rates (more on that later), the first couple homes I'm looking at are negative cash flow before taxes, but positive cash flow after taxes.

The whole point of the sale is for the first position lienholder to recover as much of their loss as possible.

welcome to the forum, I am in the same position your in.

.$1,800 Rents-$233 Taxes-$151 Insurance (Estimated)-$90 Maintenance (5% of gross rents)-$180 Property Management (10% of gross rents)-$150 Vacancy Loss (1 month)-$907 Mortage payment on 30 year fixed @ 8% with 10% down$88 Positive Cash FlowThat cash flow seems way to small for something you are paying so much for at this point.

I had planned on purchasing another invest prop soon, but don't know if I will be able to now if I am not allowed to show that the payment for my rental not only is covered by my tenant, but I have a positive cash flow.This seems like a big problem for beginning investors, as most of us don't have the money to pay cash for properties.

Thanks Pizza Guy,That is a very inspiring, positive, and instructive post.My hat is off to you sir.

At the very least, his explanation of positive cash flows in rental situations is pretty darn close to what BP vets follow as well:http://www.johntreed.com/positive.html

If you are asking what type of position best prepares you for a career in real estate.

There are 1st position notes, which means that their is only one lien holder. 2nd position notes, which means that their is 2 liens on the property.