First, make sure you take a look at the HOA's financial statements, they need to have some reserve funds, parks and pools are expensive to repair/replace when the time comes, make sure they are planning for that.Make your lease state that the tenant must abide by all rules of the HOA and give them a copy of the rules and regs.

Originally posted by Laura Al-Amery:If they are particularly worried about the process and new at this, you might also give them a Deed in Lieu of Foreclosure to hold on to and exercise in case you don't make your payments.Check your state law and with an attorney, since almost everywhere an attorney will cringe at the statement "...you might also give them a Deed in Lieu of Foreclosure to hold on to and exercise in case you don't make your payments."

I don't expect it to work again anytime soon.This statement is a bit backwards:Before the recession, houses were 200-300% more expensive and many people couldnt afford to buy a home in this city relative to their earnings.During the bubble, prices skyrocketed, making homes unaffordable for many but dumping a lot of cash into the economy.

The issue is the short sale affidavit/statement that says there are no side deals and that the sellers will not be renting or buying back or remaining in possession of the house.

Hello, I have a bank who wants me to fill out a sworn construction statement since they are willing to finance the rehab part of the loan.

I think that Jackie is correct with her statement that the basis of the strategy should remain the same as it is for your smaller deals.

Ultimately I agree with your statement that his crap can be a home run for another investor - unless we have the same criteria.

Thanks Bill...Though the reason I lost you was that I was absolutely, completely incorrect in what I said...and I apologize for the bad info...I misinterpreted how my CPA did my taxes on a bunch of seller financed mobile homes last year (which can't be sold as an installment sale), and that led me to making the very incorrect statement about getting fully taxed in the year of the sale.Again, sorry about the bad info and thanks for the correction!

The loan servicer actually represents one or both parties, depending on the servicing agreement, to act as an escrow for the obligation.They basically do for investors what a bank does on its loan, collect payments, ensure taxes and insurance are current, apply payments to the obligation, provide statements, submit 1099/98s as required.

But I stand by the statement that as a rental, a property that's worth $500K and rents for $2500 is cash flow negative.