Not good, but better than the alternative below.I *think* the rumor that David was referring to is that the bank is sitting on lots of REO (not foreclosure) property that hasn't been released to the market.In other words, the families have already been kicked out of the house, the house has already failed to sell at auction, and now the bank has the deed back in their possession.At this point, the houses are sitting vacant and the banks are not listing them, as they don't want to flood the market, which would increase supply and values would drop.

Shouldn't bad investors be allowed to fail?

You may find out that it is FNMA/FHA Uninsurable and the property will fail underwriting.

it can be big or small...if you fail to plan, you plan to fail!

Suburban to rural can be great investments if you do your research and know what is going on and helps especially if the local economy has many types of trade propping it up.This way if one leaves or fails the government can usually get something else in to cover the shortfall.There are many,many other things you can check as well that you do for planning on larger commercial projects.For house rentals I don't think it's necessary to go real deep with it.

Some lenders are getting smart and putting in arm's length disclosures so this strategy will work better for smaller lender than too big to fail ones.Are the renters able to purchase the house from you with a siugnificant down payment.

No wonder I laugh and cheer every time a bank fails or other wise gets a black eye.

Poly B has a significantly higher fail rate than all other materials.http://ag.arizona.edu/azwater/awr/nov94/leaks.htmlIf it has Poly B, it can be a detrimental to your strategy since you plan to sell in 5 to 10 years.

So, if your considering a major investment in rehab, I believe this is the better option becuase it will protect you against liens should the seller fail to perform or get into financial trouble.

He wants cash only...He said that the home has some electrical issues from the previous tenants and didn't think it could pass inspection or meet appraisal and therefore he doesn't want to waste his time with a lender....My Thoughts: I am under the impression he has received other offers and they failed inspection and the financing fell through.