If you're primary focus is capital growth (what I call appreciation potential), then you'll want to focus on more cyclical markets where you can get a positive cash flow but stand to gain more on the "back-end".In both cases above, you'll want to stick to markets that have a sound economy and a healthy housing market.

What you might be suggesting is hidding it, but then doing that could allow a seller to sell, say for more money, putting the optionee in a position to sue to enforce his option, if he is not prepared to take the option, in the real world, would that be a good move.......probably not, you might kill the sale, but then what?

Now obviously if like your wife you bought long enough ago rising rents have made her property viable but purchase price to rents out here are just nuts especially with the current climate of appreciation.I invest buy and hold out of state but I do so where I grew up and do know the areas so it makes it much more doable.I don't flip myself, but know some that do and what I have heard is that the # of deals has absolutely decreased but that the margins have gone up so the 2 have offset each other.I think were I in your position, evaluate if your flipper friends would be willing to help you break into the market.

Asking price: 39,500Estimate Value: 70-75kRent: 1000MTG Payment ~ 400 with tax & insuranceI've noticed in the "Fly-by level" guide for newbies it recommends taking 50% of the rent for expenses then deducting your payments to make sure you have a positive cash flow.

It sounds like you made a good investment--cash flow positive and you don't have to spring for repairs right away.

When the buyer has to buy, it has to appraise, setting the price where they don't create any equity based on a future appraisal is predatory, putting the buyer in a position where they can not succeed under the terms set, being predatory, besides having legal issues, such is unethical, not really dealing in good faith.

The party that has to defend the cause of action is likely in an inferior position if there is a disagreement that would prompt a suit.

It is possible to make a great ROI but not really to operate positively for a while.

And everyone is so positive and motivating which helps so much.

While the SAFE Act states who can originate and what origination includes I'm sure the intent is not to say that whatever an originator dictates must be agreed to or that neither party can't negotiate thier position within the required limitations.