The substitute of collateral was more of a scenario where you sold for $155K, and instead of paying off the $88K loan in your scenario, those funds stayed at the title company and were used on a cash purchase happening nearby in date. 

I've helped a lot of investors in your area, and I find that many of them end up purchasing rentals in the Central Valley for the very reason you mentioned.  

@Rosette PooleRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I think if you just attend any group, you'll find investors that purchase remote and local and you'll be able to learn.

My number 1 client who loves me the most, what they do is find undervalue property, purchase it at a steep discount with 10% down bridge funding.

So, the prosecutor tries to charge something he can win on and that is typically related to something the buyer has done improperly in the purchase, possession or disposition of the property. 

For an $800k investment purchase, I would expect $200k downpayment, $10k-$15k in closing costs, and 1-3 points at $6k/point.

Hey Cameron, for experienced investors I can lend up to 100% of the purchase and rehab costs on 1-4 unit properties.

Im looking at purchasing a duplex in middletown, Ohio.

You mentioned you haven't purchased an investment property before or been involved with seller financing transactions.