Any mortgage payment over $262.50 means that you have negative cash flow.

So I can't speak to any "Flip" episodes as I don't generally watch that show but I can speak a little to the CA house prices.

I have heard MANY of he prominent national gurus speak at REIA conferences, etc and almost without exception they are nothing but cheerleaders.If you pay attention to whatever you're attending this weekend, you'll find that they really don't say anything (other than the obvious) but they spend all their time cheerleading!

There are 500k sub-prime loans out there right now 41% of them are in default with late payments not to mention all the forclosures,and there are 700k Alt-A laons 54% of all of them were cash out refi the biggest contributor to loan defaults are negative equity my question is who sets the values on these homes are there any appraisers here that can give us the answer or is it the slow economy thats doing it and if so than its everyones fault that this is happening any opinions ?

Now your Mortgage payments go up $500 a mnth.You'd negate your cash flow no?

I would imagine that if you meant only the mortgage that means your expenses are probably more than $200/month and that would leave you with negative cash flow overall.

"Thanks, that was the only downside that I could also see in this situtation and being an adult mother and daughter their track record has been very good so far.Correct me if I am wrong on this, but if it came down to that couldn't you always refund them the rest of the money for the difference and negate that situation?

If I walk away, it doesn't negatively affect me or my credit.

The only thing I would add is one the of negatives is it can be harder to finance property held in an LLC.

The cost runs about $100 but gets the negative removed immediately and your score bounces back up quickly instead of waiting a whole month.Just an idea!