If so, I assume the seller could talk them down to 3%.In any case, I have a realtor that I have worked with previously, who is also a friend of mine.

So I would assume that the winning bidder would have to pay 10% of the winning bid as hand money, but in yesterdays news paper it showed all the properties up for auction and under the listing each properties had a hand money amount.

You don't mention what type of income producing property or budget you have to work with, so I'll assume residential rental as opposed to commercial leasing.So, my suggestion is to work with a Real Estate Professional in the area you are considering buying.You typically don't pay for their services as they are paid from the sellers proceeds.

I've found a small mobile home park that may be of interest to me assuming the numbers work out correctly.

Don't assume anything.

Assuming owners keep 35-40 percent of the rent (the standard share) they would pay between $500-15,000 a year to cover expenses.

all cash....thanks for your replyyou are correct, my current loan balance is about 200k (i approxmiated my loan balance...didn't think that principal came down that fast).My dilemma is whether it is better to cash out and put the 490k in the bank and earn 5% ($22,500) per year or have a net cash flow of $1,800/year in a deflating housing market....Assuming in 10 years from now the home is fully paid off AND the fmv of the home in 2016 is equal to current fmv of $725k....what would be the benefit of keeping the property?

I dont know the balance on the note or the monthly payments but it was rented for 1500. so I am assuming he isnt a total bone head and made some $$ on the rent so it has to be lower than 1500.00.

I am assuming you would compare everything to a risk-free type investment like a CD or Savings Account and additionally maybe something like a mutual index fund for your analysis.For me, I believe I would normally pay somewhere between 700-900 on rent not including utilities.

I might be wrong - but when the investor purchase the property and then sells it to his buyer the same day...I am assuming here that the buyer is closing the same day too.