I factor in everything....you should start out by knowing what profit you want, or the least amount you are willing to settle for (10,000, 30,000).

I'm glad I was "sorta kinda" on the right track.Much appreciated, Oh, would I be correct in saying that I would be treating the profit on this as regular earned income and not some other more complicated thing?

Investors buy deals in which they profit, many of which are from noob investors who didn't buy properly.

But, there are still a few things related to real estate that need to be sorted out like how do the profits build up, what are the ways to go about this….and some more.

I have some interests in real estate and have read that foreclosure is an efficient way to gather up profits.

Also consider your asset protection; you don't want Uncle Sam and Aunt IRS to get all your profit.

But the question becomes--once you buy a house as an investment property, how do you turn a profit in a market that continues to soften?

While it can certainly be very profitable, you have to put in the time to make it happen.

Further, its my experience in looking at a lot of deals that good, profitable rental does not tend to generate negative taxable income.

I made my payment subject to the successful purchase of said property, and I charged $2,500 per property, which comes out to about 2% of the net profit.