And of course, as you meet people on a day-to-day basis and out in the field you should constantly be seeking out networking opportunities.

I now have a couple of empty houses that I will send letters to and hopefully the owners will reply.Update: 6/30After nearly a week of sending out letters, I still haven't heard anything from the 5 owners I wrote to.

I rehab and flip and am planning on doing some rentals as well in the near future.

I am really eager to get other people's opinions on this, I constantly think about it but there just seems to be so many variables to this whole situation.

Start your negotiations near the nice to have point.Your interest rate suggestion is not outlandish.

My name is Jason and I come to this forum with an open mind and constant willingness to learn real estate investing.

While you didn't provide nearly enough information, it's unclear that you can even afford house #1 so getting into more property sounds like it could be a recipe for disaster.More simply put, if you're not in good enough financial shape to bring an extra $15k to the table to sell house #1 *and* put enough down on this newer house that you want to buy, then you're not in position to buy this newer house period - let alone own 2 houses.

Anyways, the opportunity is this, $500 down to invest in a sfr in Sunny Hills which is in a community near Panama City, Florida.

Insurance companies may be involved, and may pay a settlement to the lender for the damages, once the two of them agree on an amount.If this was a desirable area with sales going on, I would say the house would end up selling for something near its retail price in good condition, less the cost of the repairs.

You now have about $12K invested in the property, if you include closing costs on the loan.You rent the place for $1050/month, and assuming an 8.5% vacancy rate (a month a year) and expenses of 40% of net income (a little low, but okay since you just rehabbed), you should see the following returns:- $40,000 in total equity created from the property ($120K valuation minus $80K loan)- Year 1 Cash flow: $862- Year 1 Equity Accrual from Payments: $894- Cash-on-Cash Return: 7.43% (not including equity generated by rehab)- Total Return: 15.14% (not incl. rehab equity or tax benefits, which are investor dependent)- Total Return Including Equity Generated by Rehab: 347%If you choose to keep the property for longer than a year, your total return will obviously drop, but you're still receiving nearly $1000 a year in cash flow, $1000 a year in equity, and still have $40K in equity generated by the rehab.Rinse and repeat...