But I agree, the larger homes will appeal to families, but at the same time... they will require a higher rent.

He has offered it to my wife and I to leverage into a larger home (if we cover his costs).

At least with this situation there is some sort of least and rent.

That's a great idea as long as you have some sort of minimum holding period.

You could get a larger loan, but you'd still be dealing with the same "value" and seasoning issue.

I do have some down payment, not enough of my own to cover a larger deal ($200,000+).My income is not $0.

This book also talks about receiving seller financing from motivated sellers as a way to get into a property with little or no money down and other ideas of the sort.

I've attended some IRS foreclosed auctions...and IRS seized auctions...but I missed the latest property tax auction here...I looked at the list of properties they had...nothing to shake a stick at unfortunately.I would treat a property tax foreclosure like any other foreclosure...but check to see if there is any sort of redemption period...there might not be for a property tax foreclosure but that could vary by state law.There should be an inspection period for the property...so if you are serious about one I would get your inspector out there in advance.Also, get familiar with the auction rules...and attend an auction before you actually bid on anything.

Subject dues that I due are sort of analyzed like this by me.

Hmmm sort of wholesaling to a buyer who wants to lease option.