This is assuming you flip the property.

I assume he's talking about the HOPE for Homeowner's program.http://www.hud.gov/news/release.cfm?

In the past I assumed that it wasn't worth it to go after a debt after eviction because of the very slim chance I actually collect anything.I had not considered that there would be services that would only charge a % of the recovered amount.

Make your offer based on current rents.If you want to be break even, and you want to be optimistic about expenses and assume 40%, here's what it might look like.Rent: $3270Expenses: $1308NOI: $1962 (put all of this to the payment)Max price: $310,409 (at 6.5% for 30 years)Even with your down payment, don't pay more than this.

Further, it assumes you will stay put.

Assume you use an agent to sell, and pay a total of 8% in closing costs.

If you lock yourself in an 18 month L/O you won't be able to sell to someone else for that time, so you are guaranteed to lose that money every month.The way I look at L/Os is that I assume the person is never going to buy it.

I assume that's PITI.

Dave I assume you are trying to pick up some REO listings from the asset manager.

There is a system out there being sold stating that you can contact property owners who are delinquent before it goes up for the tax sale possibly buying the property for a token amount, assuming the taxes, recording the deed, & then turning around flipping it for a quick profit NEVER actually paying the taxes but rolling them into the price where it's still a bargain.Or buying the tax deed for pennies basically, recording the deed, then letting it go up for auction.