If you look outside the US you will find a few banks that have been bailed out because they were lending long using short term financing when buying MBS related bonds.

Most sellers are relatively smart and a handwritten sign may come off as 'amatuer' to them.

As i am venturing into this new world of real estate, i am quickly realizing the importance of building relations with people and I would like to make as many contacts and relations as i can in the field; I hope i can begin to do so through these forums as well as get help when i have uncertainties.

If your going to rent it even worse you renter will not be happy living above what seems like a toxic chemical dump. they ll call the health department and boy your troubles are just starting now you don't want them finding a hazardous wasteland under the house get in there now while its easy to access plus it will just build up and you ll have rats the size of small dogs under your house and it can cause foundation problems. your better of not selling this problem to someone else you may end up in court if they see chemicals they ll know you knew about it sometimes(most times) there is no shortcut you ll have to rework your budget to accept this.

So, I try to stay productive cause one day I won't have the strength or maybe the health to do labor.

Or focus on property that has very high income relative to the price.Note that as you raise the income vs. the price you are likely looking at a down market property or a property with other specific issues.

None that matter to this discussion.Financing can come from a party that is neither a bank or related to the seller.

For the past 40 years, we've averaged between 3-5% appreciation per year.Here are some numbers:Sales Jan 2006 – July 2006Houses Under Contract 10042Houses Sold & Closed 8811Average Selling Price $172,273Median Sales Price $138,500Sales Jan 2007 – July 2007Houses Under Contract 10213Houses Sold & Closed 8998Average Selling Price $173,845Median Sales Price $139,900% Change from 2006 to 2007Houses Under Contract 1.7% IncreaseHouses Sold & Closed 2.1% IncreaseAverage Selling Price 1.0% IncreaseMedian Sales Price 1.0% IncreaseWhile it doesn't represent a complete picture of the market, it at least shows some indication of strengthening.The number of total properties on the market is still relatively heavy compared to several years ago - but at least the rate that they are coming off the market is starting to increase.Generally speaking, partially due to the media frenzy about the "disastrous real estate market" - its still a good time to buy investment properties, or move up from your existing home.Its generally not a good time for a lateral move, or downsizing.

We also live in a relatively steady appreciation area.The HELOC will also eat into your cashflow.

Wow, sorry to hear about your Beauty, I can relate as I have two dogs of my own.