I bought a new house in Colorado from a builder and figured I did not need a inspection.

My plan is to buy and hold and most of what I find looks like the figures below, which is actually an REO I am going to make an offer on on Monday:3/1 and 984 SFListed for 77,900Estimate Appraisal: 93,500 - 114,000Sold in 2006 for $110,000 - but that was during the boom...Will Offer: 69,000Bank Loan: 80%Down Payment: 20% - best my area offersTaxes: 1693.00Insurance: 1,100Repairs: approx 6,000Will probably rent for about $750 - rents not = to the 1% rule in Ocala.After I figure the taxes, insurance, 5% vacancy rate, 8% of income for maintenance (don't really know how to account for this as I'm a newbie), $210 electricity/water holding costs till rented per year, $200 for advertising to rent it per year, my OE are at 48% of my operating income . 8,400 - 3855 = 4,209.I will have 4,209 left to pay P & I, and I will be negative a couple hundred dollars the first year.

(I don't want to get into due diligence on the accuracy of the figures; please take them as true for the purposes of my query.

So, you have to figure that out before you start.

I figure the second Is my responsibility, (my dept) and in five years it sould be paid down pretty good.

I don't see how having your cash needlessly tied up can be beneficial, because you lose out on the exponential growth you can achieve with the bank's money.The best I can figure where all cash is useful is to find a good deal and then refinance (correct me please if I'm wrong).

For my first day of visitng properties from the list, I visited the properties that had been on the list the longest, figuring they were closest to foreclosure.

I figured out how to add Biggerpockets forum to my My Yahoo page and igoogle.

You need to make calls, though, to figure out all the details.

So now I"m on to the next phase which is trying to figure out how it's going to impact the RE market so I can focus my energies on changing the things that are in my control so I can help my community, those around me, and my business.