And I would encourage you to even cap your max bid lower than that, since you still have to account for any property that is still occupied (and that you might have to do "cash for keys", and that occupants can become irate and inflict damage, plus other factors...)And of course, purchasing with the above 65 to 70 percent rules does not guarantee that there will be positive cash flow; those formulas usually are used for re-sales.

Thats what you can hold against them.Do you really want to evict when part of the rent is guaranteed, thats the catch 22.

VA charges a fee of like 2%-3% for loan guarantee.

Also if you ever tried to borrow against the stream most banks won't loan against contracts that aren't guaranteed over the full term with fixed returns.This has just been my experience but I haven't played in this arena too much.Hope it helps.

Just because the bank gets a 75%-90% guarantee on the loan doesn't mean that helps you.

Its $3000 just to sign up, and no guarantee.

The vacancy loss alone not including repairs to get it rerented and no guarantee you would get increased rent has to be factored in.

UGGG.... with 3 children this is less than ideal.But there is no guarantee that the house will actually go to sale on May 11th, because the home owner and his "short sale specialist" are so slimy and unethical they know every trick in the book to postpone the foreclosure date.

Prop 2 is ridiculously low on expenses and even though the current tenant might be great there is no guarantee what will happen in 3 years.Personally, Prop 1 seems like the more flexible, realistic choice unless it needs a lot of work, bad area, or something else that just the numbers don't show.

One lesson learned here is that you probably shouldn't be paying for four appraisals without some guarantee that the loan would be funded or you would be reimbursed at least some of the appraisal fees.On the third appraisal, I probably would have gotten suspicious...