Assuming the original 2nd mortgage payoff is $3K, then this decrease your spread.

We could also put labor into buy and hold properties, decreasing repair/rehab costs.

***Brookfield and Dubai government start a $1B fundOctober 27, 2011Brookfield Asset Management and a Dubai government investment branch will begin a $1 billion fund to acquire real estate properties in Dubai, United Arab Emirates following a price decrease of more than half since 2008."

I understand the amount decreased is just added to the end of the loan.

So as you move into higher price brackets, your cost to repair and improve will decrease as a percentage of the property value.

If you decrease expenses then the NOI will increase.  

During the slow season, do you decrease the rents?

The intention is to decrease the foreclosure rate for such a low down payment, by it being an owner occupant product.

iv'e walked in houses that are out of level ( in a hall way ) by at least 2" , i didn't buy that one, but that you can feel, as you lean against the wall walking down the hall way - just kidding. what you need to do is find out the cost to repair it and determine is it worth putting say $8,000 towards something that may only decrease the value by $5000 in some buyers eyes or by the appraiser.

For instance say a properties premium is $3000 and the percent you are bidding starts at 30% you would comete with the other bidders by decreasing your percent.