I think the theory that you can 'maintain' but NOT 'improve' the property makes sense.

.-20k down-4k closing cost-4k some repairs before rent ready-30 year loan at 5%-so all in for 28k-10 year expected hold time-Rent for $1175-taxes $290 mo-insurance $120 mo-mortgage payment $430 mo-total is $840 mo PITI-above numbers give $335 mo cash flow-after 50% rule = 157 mo but I adjust this up a little because I don't use a PM so I figure $195 mo is acceptable (maybe!).

You must have capital to manage the needs of the property in reserve, ether rehabilitating the property or even simply maintaining the property.

What you need to understand is that the reason there's CC&R's on subdivisions, etc. is to protect the integrity of the design and maintain values.

Maintain your current job for benefits etc until your RE career takes off.

Who is to maintain the loan file and qualifying documentation to support that loan.

I've gotten the home through the first several hoops of short sale initiation, and I'm currently at the point where I'm submitting all docs on behalf of seller (hardship forms, etc.).My initial thoughts on this: I've purchased short sales, but never been on the listing side, and I viewed this as a great learning experience (as I am a full time real estate investor more so than real estate agent) to gain first hand short sale knowledge and be able to help those in similar situations in the future (as I think short sales will be more popular than foreclosures to the banks going forward).However, I have a personal fix 'n flip that I just received an offer on and will close probably right on time with completion of the extensive short sale paper work (30 days out).My current thoughts: This house is a great investment and is in the same neighborhood as my current flip, and I could stand to make some good money by purchasing this home.

But, she's unsure of her tax implications or capital gains taxes without being in a trust while maintaining it's her primary residence.

If you as a 2nd lien holder are defaulted on, you may be able to squeak by and not loose money if the borrower maintains the first.

Who maintains the road and does lawn care?