Deep Pocket purchases fifty his return is $300.00.Regarding Tax Deed, many people use my service because of the "Buyer Beware" clause in Tax Deed auctions.

That would allow me to get into cash producing property with next to nothing out of pocket, and I can keep my cash for other things.

you can't make offers with 10k in your pocket for down payment with no financing to close the deal.banks don't wait around for you to find financing. they close in 30 days usually.

I would like cash to be in my pocket instead of spending it all on the property and taxes etc.

If you sell them for their market value, how much will you lose vs letting them eat into your pocket month after month for the next few years?

By exit strategies, I mean having enough equity to be able to drop the price significantly to move it in case of an emergency or as you said, offering a lease option or taking less in rents to at least break even so that you don't come out of pocket.

Now annualize it and divide it by how much initial money out of pocket it required of you to do the deal.Here's an example: I make $2,000 per month in rental income, and I have $1,500 in expenses per month.

okay for your first investment - land is probably not the most ideal investment - because it doesn't put any cash in your pocket and there are really no tax benefits other than writing off the taxes.basically cash will flowing OUT OF YOUR POCKET rather than OUT AND BACK IN TO YOUR POCKET - possibly like a rental unit.if you were to start a business - say a pizza shop - now you're just starting out...would you invest in a pizza shop that doesn't make any money and only costs you money to spend on it????

You can't expect to find a deal like this if you're looking for one where you'll have $30k out of pocket.

That would be the minimum return.This area has showed 10% growth for the last three years, so there is the potential for the investor share of appreciation to be another $18,000.You have the potential to get $18,000 to $36,000 back with $1000 out of pocket.