I think more of what you are asking is how the occupancy level and accuracy will affect what kind of loan you can get and how much you will put down and how much the debt service will be.A regular lender at 90% occupied maybe 6.5% fixed at 75% ltv.If you get into value add deals you will pay points and a much higher rate to fund and lower LTV.You will then need to refi after stabilizing about 1 year out.So you build the carrying costs into the amount of time needed.The books will determine the verified income and actual costs.From there you run your desired cap going in and that tells you around the price you want to pay.Now if the books are out of normal standard margins you have to ask yourself why that is (deferred maintenance,undisclosed credits to tenants,disguising fees paid to themselves in other line items,etc.)

Secondly thank you for posting that reminder and reality check for us all.I have to admit, I have a 4 family with washer/dryer hookups in the basement for each tenant and I know several tenants do not clean the lint out of the dryer regularly like they should.

Like I said I don't know much about it but I know enough to either just forget short sales and go the REO route OR if someone contacts me that is going to be over that time limit, refer them to a Realtor that can help them (of which being new I don't have anyone that I could recommend so calling all RE agents, this is a relationship we could foster that could be a win-win ...

This property is an investment property, and already has a tenant in it paying 700$.Since I purchased it with a short term lender, I'm looking to quickly get it refinanced with a regular bank, lower interest 30 years fixed.

The large banks and investment firms have managed to get a handle on their inventory and they do not flood the market depressing prices but instead have what I like to refer to as a controlled drip.

@Jon Holdman FYI because I thought you'd be interested: I have heard it regularly called "open escrow" in Texas as well, at least among local investors in Austin

Cross reference with the court house records and run a title search at a local title company (liens, etc.).That is the beginning.You still have taxes, arrears, etc...How long has the property been on M.L.S.?

So, its no worse than a regular W2 job.What is worse is that because you're self-employed, you have to play both halves of the Social Security taxes.

I'll probably modify the reference contract to allow two persons per room.Steve Babiak; would you *really* including sleeping on the sofa as a long-term living option (i.e., include that in the lease contract) ??

Again, lesson learned.For future reference, you can generally buy a tub for less than $500, get it installed for less than $200 and replace the supply and drain lines for less than $300.