Note that you will need more than 10 or 15 i think postings in order to post in these threads.

Typically what you will find is that they will allow cash out only to 65-75% of your purchase price which leaves a significant portion of your cash and improvements tied up.Better NOT to buy with cash but always make sure there is a note/deed of trust or mortgage filed at closing on the purchase so you are alwys paying off underlying debt.

I would raise their rent some each year regardless but would always go back and run the numbers (inflation, mortgage note, water bill, taxes, security light, maintenance, etc.) and make sure the numbers work to positive cash flow.the last thing you want to do is to not raise the rent for 3 years and then get a bump up on your water bill or taxes and then have to raise the rent all in one shot.easier to do it gradually over the years keeping pace with inflation and expenses.Brad McLeod

[NOTE: the following is not to attract other investors, this is to build a retail buyer list... like paidwell mentions you only want to present good equity/profitable deals to local investors]Start by selling your own house?

This may be a good chance to make money and at the same time help the current homeowner out of a sticky situation.

So, invest the difference between the IO and 30 year loan payment (where does that come from, if the deal doesn't work with a 30 year note) and earn some more money on that".

Never been there, though I do have a note stuck on my fridge saying to go visit the place.

That means that a starter vacation rental property in Newport Beach that rents for $2,500 will gross $55,000 annually while a non-vacation rental will gross $30,000.Please note that I said gross, and that does not imply cash flow.

Write out exactly what is expected of all parties involved and you shouldn't have any problems.As a side note, if the investor tells you that the deal is garbage...IT'S GARBAGE..:) I've had newbies come to me with some bad deals and it seems like they are so anxious to do their first deal that they try to make make a bad deal into a deal.

Here's one:Appraised $100,000.00Sold to the client at 85% $85,000Immediate equity for client: $15,000Property rents for: $850 per monthNet monthly profit to client from rentals: $150.00That's about the same as the others they list.If you work the math backwards, and assume 6.5% 30 year note on the property, they're assuming expenses are about 20%.