I am assuming he will only get paid for what is owed on the property, and then if you wholesale it, even to make money, who is going to buy for that price?

Example: 300k down gets you about $400/ month assuming 50% of rent is calculated for expenses.

ALWAYS assume you will have a 90% 30 year mortgage, just so you can compare apples-to-apples...and to that point:Taking the other extreme: Imagine that you have a house fully paid off, so that your only expenses are taxes, insurance, repairs, and property management.

To Robert's comment about being able to recover negative rents on a tax return, I assume this only applies if you don't earn over 150k AGI and you're screwed otherwise?

I suppose that maybe I just assumed the issue was a little more legitimate.

Once I decide to purchase my 'first' property and assuming I will be in that location permanently, do you suggest that I begin with a single family rental rather than a fourplex, triplex, or duplex?

I assume she has, or will soon stop paying her mortgage.

Things go exactly as expected for the first 5 years, but then you have a terrible tenant and he does $5,000 of damage.In this instance, your entire profit for the entire 5 year period is wiped out and it will take you an additional 22 YEARS to make up the loss (assuming that you don't have any further losses - which is very unlikely).

I am not clear on lease options, quick sale, assumables, assignment on contract.....LLC, S Corps.......it makes my head hurt.Any comments?

This man was talking about assumable loans, and my question is if we don't pay a downpayment and we assume an already existing loan,how does the investor make any money?