In my experience, the owner pays taxes and insurance, and, usually gets the benefits of tax write offs as well.

And, my agent gave incredible service for the 2% she got - much, much more than just listing on the MLS.Of course, an added benefit that my agent received is that she also represented me on our new purchase so that was another 2.5% for her.Finally, the commission doesn't really matter *if* you have educated buyers.

I think it's a nice benefit to provide them (and it's a renter's market) but how do we tell them it's their responsibility to replace them or repair them???

I have tried to explain that we get equity in the house as the mortgage gets paid and we both benefit when the house is sold; also, my sister comes into town and stays here for rather lengthy visits whenever she wants so its not like she's not benefiting from her investment, too.

I'm really entertained by those starting out themselves, who believe themselves to be from affluent backgrounds (new money families) when they find out they qualify for benefits or can't qualify on their own steam for a median priced home.

There are some great benefits from that status it's tough to find an exact and "official" definition.

If you can handle the negatives from a cash flow perspective, and it helps you to reduce your taxable basis from other incomes ($$$ benefit), and you are counting on long-term appreciation, I feel this is still a strong strategy.

The risks he points to are:1) Borrowing Too Heavily2) Selling your property too quickly3) Using ARMs to get a cheap loan - using adjustable mortgages in a rising interest rate environment is a dangerous formula4) Not having a plan for financial emergencies such as medical emergencies5) Skipping a property inspection because you just have to get the deal.

Right now i'm in an area that is considered a "buyers market".. not sure how this would benefit an investor since everybody is looking to cash out in this area.I have my first prospect on a nice 3bd single family home owner is asking 86,500 for it.. other houses in the area are going for 95k I know this could be a good investment..i'm sure i can get her down to 80k and possibly 78k.

Tell the sellers agent to extend the contract and get off of your back while you adjust your plan.