A preforeclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satisfy the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer.

There are many other expenses besides taxes and insurance.

My plan is to buy and hold and most of what I find looks like the figures below, which is actually an REO I am going to make an offer on on Monday:3/1 and 984 SFListed for 77,900Estimate Appraisal: 93,500 - 114,000Sold in 2006 for $110,000 - but that was during the boom...Will Offer: 69,000Bank Loan: 80%Down Payment: 20% - best my area offersTaxes: 1693.00Insurance: 1,100Repairs: approx 6,000Will probably rent for about $750 - rents not = to the 1% rule in Ocala.After I figure the taxes, insurance, 5% vacancy rate, 8% of income for maintenance (don't really know how to account for this as I'm a newbie), $210 electricity/water holding costs till rented per year, $200 for advertising to rent it per year, my OE are at 48% of my operating income . 8,400 - 3855 = 4,209.I will have 4,209 left to pay P & I, and I will be negative a couple hundred dollars the first year.

Now you'll need to pay for the carrying costs (mostly interest, but also insurance, utilities, and perhaps other costs.)

In this current climate, I'd probably stick to commercial that's anchored by products people will always need - food, clothing, shelter, insurance and alcohol.

When you get liability insurance, do you get it for the company or on the employee?

HSA's do require a high deductible insurance plan, as to paying for a second in addition to the one provided by your employer or switching is something you should verify with your financial advisor or by looking up the HSA guidelines on qualified insurance plans.

For a cash purchase of an REO, there's really no need for title insurance.

If you like to "hope so and wait" type of person, choose stocks.Real estate on the other hand has all the benefits.Their values are like a slow moving train that youget to inspect, repair, rent, insure, buy 7 different ways,sell 7 different ways.You can see it coming (appreciate) and going (depreciate)in time enough to get on and get off and make a profitbefore, during, after, and all around.There is no comparison - real estate is the best hands downas long as you're competent(take all costs into consideration) and prepared(have the best support team).Sure yo can kind of be 'competent' and sort of 'prepared'in buying/selling stocks, but again, it is still a "hope so and wait" 'technique'.

However, the person that is buying the property will need title insurance.