If you get so deep in a project you have little choice but to finish it unless there is some dummy you can flip it to.

You already noted this in your own analysis.Just using these simple rules, you should be able to tell that these numbers are not where we want them.To make this deal work, you will need either a significant discount on the purchase price, or have some way to substantially increase rents (or both).But remember, your goal is not to fudge the numbers to make the deal work, your goal is to find the deal that fits your numbers.

At that point they had a choice:1) Renegotiate with the current homeowner to start paying the mortgage again (possibly at a reduced value because it was the mortgage was purchased at a discount).- OR -2) Wait for the homeowner to miss one payment and foreclose on the property, thereby buying something for a deep discount if you don't mind going through the courts to eventually own the property.Has anyone seen this type of negotiation/deal with lenders?

I knew deep down that its the people who follow through with their agreements that come out ahead in the long run.

For those that bid @ property auctions...how did you find your title company and do they provide you a discounted rate?

If you know you may have increased holding costs, and at the end of the day you know you will have to discount the property just to sell it, you will have to be very careful with the price in which you pay to acquire the property.

Thanks in advanceHi Ronald,Great post.My experience has lead me to believe that the best deals can be bought in colder months.There is less competition and larger discounts are granted by sellers.With that being said, a good deal can come along anytime.The key is to have the cash and be able to snap it up instantly.Thanks and have a great day.

Of course, this is not completely apples to apples as you committed the down payment, but you can discount the monthly savings going out several years and compare that to your down payment and it would be far greater.This comes with a caveat that had you waited and screened more properties, you may have gotten a better deal in which the math made more sense.

My reply to this is that I will give you my regular fair price on the first 6 , and I will discount the last one .

I am very happy with my choice and have paid in full for 3 years to lock in a discounted price.