I know I can rent this place to college kids for $350/per bedroom ($1400).So my math breaks down like this:Purchase- $85,000Down Payment- $17,000Mortgage (80%)-$68,000 (@7%, $450/mo)T&I- about $200/moVacancy and Repairs (15%)- $210/moTotal Costs- $860/mo$1400-$860=$540 cash flowCash on Cash-($540*24mo)/$17,000=76%Cash on Cash w/ mortgage-($990*24mo)/$17,000=139%This looks to be a great deal...

If you're taking money out of a tax-deferred account at the age of 30, you effectively have 30+ years to make up the 40-50% tax/penalty hit.I'm not say I recommend taking early withdrawls (I generally don't), but it's important that the math isn't misrepresented.

You can suggest to the current owner to try and do at least something minimal to stop the leak.Tell her about the mold issues that could arise and affect his/her health if left unattended.Write into your short sale contract a special clause that requires a secondary inspection to verify that conditions of the property has not deteriorated since the original contract may serve as a motivation for the owner to do something to have you not back out, of course, the flip side is you may scare them off with such contingency.

I know investing is what I want to do, yet I have some fear that I could end up in a bad place without a secondary source of income.I'd be interested to hear what worked or didn't work for any investors out there that started at a young age.

However, the best underwritten notes can go bad, they don't revert back mostly due to poor underwriting, that's rather odd thinking as all secondary market loans are usually better underwritten in the origination and they certainly go bad.

I am interested in the purchase of a secondary SFH investment property prior to the move, but struggling to make the numbers work.

@Chris Haas - back before we heard all the 'rules' we just did the math.

One of the big differences in the two is the secondary market.

Secondary market lending won't usually begin until a third to half phase is completed.

Looking at the math I get why it's a great investment, so now it's down to the details.