Be careful with unlicensed mom & pop property managers who seem "cheap" and take on more than they can handle - a lot ends up falling through the cracks and you waste even more money in landlord-tenant court and in repairs due to neglected maintenance.

Don't hire some mom & pop operation that offers a cheap fee but they can't deliver on service because they have more properties they can handle.One other thing about LLCs or corporations - these are EASY to form, BUT banks are very weary about giving mortgages to new companies.

One more thing, at least you found out this lesson and it is a relatively cheap lesson!

Aly,I'll tell you why in 5 words - real estate people are cheap.

Lots of cheap houses, lots of businesses (high-tech and retail) moving into the area and not a lot of investors.

But, in addition to the interest you pay (not cheap) he gets five points every year you have the line.

Starting a wholesale business can be relatively inexpensive depending on how you are doing things.If you are using cheap marketing, and structuring your deals to put no money down, then you can get away with low money.

However it is cheap and has high cash flow for a reason- not everyone has the stomach or cajones to do business in these areas.

Each program is separate(one for buyers and one for sellers), and they aren't cheap.

Insurance is cheap, taxes EXPENSIVE.