He would be able to keep all gains, profits and cash flow from the investment and would be taxed on that, he just have to pay back the loan plus interest.

Concerning investors looking to purchase properties for cash flow, if the house is already fixed up and on the market, should they still buy that property at 60 or 70 percent of the FMV as "profit/capital gain" investors buy?

I'm gaining equity in two properties worth a total of $300k, and I'm living in a newer kick-a** house.I'm cautious about making this decision because I will not be able to afford the two houses if I can't rent the first house.

When you see the HUD you should be able to identify the actual seller and contact him directly for future deals and possibly gain a great new conduit of properties.  

When someone says they will use their own money or do the physical work themselves to save they really aren't saving they are making an equal trade where there is 0 gain.  

I suggest building a strong team around you (broker, mentor, lender, etc) for your first investment at least to help you gain experience.

Keep pushing forward; no venture no gain...Kudos,Mary

So you have to leave 20% in the house and one could with draw the rest.Unless you fall under the capital gains exception I recommend you look into a 1031, so you don't have to pay tax now.

Postal Service address,Voter Registration Card,Federal and state tax returns, andDriver's license or car registration.The home is near:Where you work,Where you bank,The residence of one or more family members, andRecreational clubs or religious organizations of which you are a member.You can exclude up to $250,000 of gain ($500,000 if married filing jointly) on the sale of your home if you meet the Eligibility test.Eligibility Step 1 - Automatic DisqualificationDetermine whether any of the automatic disqualifications apply.

Recently my mom has been looking at a bunch of houses in the Clinton Twp. area in hopes of either finding rental properties or doing flips (I think flips are her ultimate goal but she is a novice real estate investor as well and would like to gain more knowledge before she begins).What are your thoughts on the north-of-16-Mile-Road property market for my mom's sake?