You at least should hold the property 1 year and a day so that you only owe 15% cap gains when you sell.Our land contract tenant didn' t pay the insurance two years in a row and the lender instituted forced insurance letters both times.

If you're holding them for rentals, then selling after a year or more (not a hard and fast number, longer is better), and buying another property, you can use the 1031 to defer the taxes on the gains that you roll into the new property.

Sounds like you want/need to be a passive investor which is fine.

Now if you're looking for the 'rent' and would be happy with the gain if the option is exercised, there are some possibilities-just make sure you'd be happy owning the stock if it drops.

Another benefit to these owner's is that they often will hold a contract (no bank contact) at favorable terms to avoid the capital gains.

With props usually renting out at between 500 and 900 per month, Returns are always above 10% but trickle in the mid 20's meaning you can have your money back in 5 years tops and if you decide not to hold onto them long term, you could sell them when the market turns around for huge gains...

Also, take into consideration the cost, aggravation, the net gain, the need for improvement, the improved quality of life, the suitability to all occupants taste, needs and desires and in the end the ability to receive a higher sales price.I choose to remodel more often than add-on because it goes much faster and the profits role in quicker too.

You need to keep in mind that most owners want to remain in their house (that's why Bankruptcy rates are so high because that will keep them in the house longer).If you approach asking them to sell..... you are facing near-impossible odds.If you approach with useful information about the foreclosure process and what options they may or may not have.... you stand a reasonable chance to gain their trust, bring them from denial to acceptance and hopefully... they will realize that selling may be the best chance they have and you are first in line.I want to note that while I disagree with ProHabber on his opinions of short sales, I am in agreement with him on nearly all of his advice he has given on this website.

Cash - everytime I read about what you're doing, I gain more confidence.

I have also owned many businesses:johnmichael: Laundry Mats, Retail Stores, Flea Markets, Convince Stores, Arcades, Rack Merchandising, Mystery ,Mystery shopping Company, Auction Centers, Answering Services, Vending, And the list goes on.johnmichael: Now enough pumping sunshine up my own skirt LOLjohnmichael: Do understand we will be going over the basics and then step by step jump into the more advanced and creative strategies of locating Real Estatejohnmichael: I do want to cover basic investing strategy for new investors; johnmichael: STEP 1 - Buy a piece of real estate under the most favorable terms and conditions possible with as much leverage (OPM--other people's money) as you can.johnmichael: The art of this game is finding moneyjohnmichael: Money is everywhere folksjohnmichael: How many Dr's in your townsDan_Auito: We are gaining strength in that dept as more and more lenders are finding our home herejohnmichael: The are of OPM is just asking for it!