@Greg Grant It 's fairly smile, if you're bidding on hubbub, or auction.com, etc. you are buying a REO and they typically come with clear title.  

To be fair, I think deflation would be temporary (it better be, or else invest in guns & ammo) and is a bit of a "black swan" event, but it is possible and I think more probable today than people are tending to give it credit for (my opinion and gut feel).

The other big risk with any investment right now in the AV is that the market is fairly high right now and historically this area gets absolutely hammered when a recession comes ... it always comes back, so if you are a long term investor it won't matter as much, but something to be aware of and carefully structure to ensure that you can hold through a downturn to make it to the long term.

I offered to speak with the couple (who we know fairly well) but he said that would give him away for sure.

It's taken 5 or 6 years to just regain a "fair" credit rating.

I tend to be in both cities fairly frequently. 

Hi Bobby- just keep in mind that Hubzu is zero- inspection.Once you win the bid you will have to send a non-refundable deposit.Also, Hubzu normally keeps the reserve price fairly close to the listing price on MLS (maybe around 90% of MLS price).I recommend finding the number you are definitely comfortable with and then setting the auto-bid feature so you don't have to sit there bidding back and forth with other investors.

It could cashflow if I added a bedroom in the basement.I'm a fairly conservative investor: a minimum of 20% COC, 2% rule, with a good buy and/or multiple exit strategies.I actually discovered BiggerPockets because I ran into issues purchasing my first two condos - I could not get the bank to finance the second condo because there was too many rentals within he complex. 1) Condo (1/1) - purchased w/ 5% down as an owner occupied property (one of my best properties)2) Condo (2/2) - got denied so I got creative and used the checks that credit cards sent you (25k) from three different cards, begged friends, and had about 15k in my bank.

Also does anybody have a fairly simply commercial lease they would be willing to share?  

If everything goes well and if I can sell the home for $1,200,000 I believe we can profit around $300,000.What would be a fair split between y partner and I?