It would be an excellent exit strategy if it could be pulled off ( legally) that is :D Just my 2 cents

In Florida, there is, or at least was, a legal issue with starting a lease other than the first.

And hey, if you'd like to bring up some legal issues that would be great, too, because hey - LLs are increasingly becoming 'targets' (ha ha) in more ways than one.

There are disclosures and specific forms that must be used, but its perfectly legal to buy a house in foreclosure and "flip" it to another investor or fix and flip it or whatever.As I understand, Maryland has laws that say you must return 82% of any profit to the former homeowner.

Aside from meeting basic legal requirements for any contract, everything else is entirely optional, including the security deposit amount.

So the more people you can legally fit in a house the more rent you can charge, and the rent usually goes up around 3-5% a year.I am currently looking for a rental, have found some that should cash flow but I am holding off to find better deals in this market.That article from the WSJ also had some good advice... schools with rising attendance, in big cities and who don't guarantee housing to all students is a big one.

Next, they will get a legal aid lawyer and sue you.

Due to the above restrictions it's (to my knowledge anyhow) impossible to buy these appartments for less than 65%-70% ARV (already rented out).ARV: 100.000,=Price: 65.000,= (including renter)Buyer cost: 6.500,= (10% over here)Equity: 28.500,=On average people will move every 7-8 years.

Insurance, advertising, tenant screening, legal fees, maintenance, evictions, the list goes on.If the net taxable income is negative (entirely possible with the depreciation) you may be able to deduct this against your ordinary income.

This is actually not legal (SEC I think?)