I have been researching and finding distressed properties in the area that I live in order to make offers on one or more properties.

My opinion of an area may be considerably different than someone who lives in a super suburban bubble and never deals with distressed homes or C to C- areas.Also, I recently spoke with a new investor from San Diego who spent several days here.

I’m working with a distressed seller that is trying to avoid missing a payment on the mortgage.

Purchase price: $215,000 Cash invested: $40,000 Purchased distressed property in 2008, upgraded it, lived in it for 2 years, then we have rented it out ever since.

Look for properties or sellers in distress.

I like to not only use the MLS for comparables, but a third party- https://www.blackknightinc.com/what-we-do/data-ser...The comps they use have significant details, such as how the property was purchased (mortgaged to an owner occupant, distressed, bought by investors-which is usually less than market value).

The goal is to find motivated sellers & then buyers to buy those distressed houses correct?

It was not originally listed for that price...but We were able to get to that price during the due diligence mostly because of the several delays we had in financing because it was so distressed and the vacancy was so high.

FHA 203k loans are typically what investors are best suited for, as most look for a distressed property that they can put some money for repairs into to not only build instant equity, but to be have a wider variety of properties that they can look at.You do have a good point about mortgage insurance though, which is why my company, I'm not about others, offer a product called HomeStyle which is a conventional product.

By locking in our funding we can eliminate one source of potential distress and we can also 'fix' one of our major expenses by locking in the financing rate 7.Increase your cash position – there will be opportunities to buy distressed assets from people who were not prepared, but you will need cash 8.Reduce Leverage – leverage can be used to provide higher cash on cash returns however along with leverage comes greater sensitivity to any loss of income.