I'm new but if my math is right, 38k would be what many would say don't go over. 70% ARV-repairs comes to $37,500.

Account ClosedBefore you even talk to your neighbor, you will want to do some basic homework on this property (configuration, size, size of lot, rough idea on ARV, etc, etc).

Have some homework to do.

Pretty sure if someone did that the legislature would call an emergency session to institute the death penalty...In MA the only things that can be collected are first, last, security (of no more than 1 months rent) and a re-key fee (That I don't know anyone to actually collect).We can't even charge and application fee!

The math makes sense in the short run since I will be living in the house, however I am unsure if it is a good longer term investment.Ideally I would like to buy a property that I could rent out at a profit after I move on.

I'm definitely doing my homework and lots of research.

Also, I discovered a major flaw in my math after listening to a BP podcast yesterday (Thanks, guys!)

If you trust him then you sir are not going to be very good at rehabbing houses.Tax lien buying is interesting i have read into it some but i know here in ohio we have a few more complications then some of the other states make sure you do your homework here. also the laws change from county to county.

The math says that there aren't that many people out there who will get rich off of real estate; many more will fund their retirements the old-fashioned way of earning wages and investing some of that money for when they quit working.

LOL Bill Gulley, I am thinking I am going to buy books and stay on here and do more homework....I am thinking I should invest your money but in my name, sounds like a good plan....Oh and I keep all the profit too LOL