I'm sure there were many properties that went underwater, but if they are rented with a positive cash flow (even if they just break even) they are an income producing asset, even if they only generate an after tax advantage.

I have connected with a couple of local wholesalers, but they only produce a couple properties per week, many of which don't fit my criteria.If you're still wholesaling, I'd really like to get together!

For example I've bought in Rosamond, CA and Dayton, OH, because the odds the AF will close down their major test base and their major acquisition hub are close to nil, but I'm really weighing my decision at the next base I'm slotted to go to, in Albuquerque, because that bases primary roles are directed energy (which is slowly being decommissioned), special operations, and the nuclear mission, of which neither of the latter two "Have" to be in ABQ, in fact, Spec Ops can easily move to Florida, and Nuclear could easily move to a number of other places.

I have a home in Shasta County, CA that would be ideal for a multitude of uses that could produce income.

Hopefully these leads will be more quality and produce more deals than some of my other methods of obtaining leads.

Which would you rather have and which one would produce better cash flow?

The earnest money deposit becomes non-refundable at that point and will be held as liquidated damages if the client doesn't appear to sign Lease/Option agreement or fails to produce the rest of funds necessary to close.This saves a TON of time that is wasted in the TBer lookie loo business.

If it produces a 12% return at a certain price and you're buying for cash flow, isn't it worth that price?

Hi Silvestre Madrid ,That's not a bad idea if you're looking for a place to live AND you want to build up the equity in that property while you're living in it.However, I wouldn't go as far as calling it a true "investment" because an investment provides you cash-flow, and your principal residence doesn't generate cash flow each month, or provide your with a return on your capital (until you sell it and realize a capital gain).In some markets it actually makes ore sense to rent your residence, and take your investment capital into a market where real estate makes sense and produces cash-flow and a healthy rate of return for you.You obviously need to consider your personal situation, living expenses, investment capital, etc.

Followup, is it true that we don't want to hold a mortgage note near its maturity because the deductible portion of the payments will be too small and we are better off cash-out refinancing to an equivalent payment size as long as we can produce income on that cash-out equal to the interest rate of the note?