Now years later you have refi costs and most likely higher debt service with a higher interest rate.Don't talk yourself into a deal with special financing.

Which i do get as they see me as one more potential competitor in a tough market....

I would start by scouring the forums and paying special attention to the areas of real estate investing that interest you.

If you cannot verify previous owner gave rent concession then a court battle might be tough to win and just a letter to credit bureau would be what I would do.

I can put 5,10,15,20% downs but I would like to now what the pros have to say.My goal is to buy 1 home every 5 months and finance it, I know after 5 or 10 homes it gets tough.

David Tower it sounds like the owners are in a tough situation... the bottom line is still the numbers, right?

As part of my day job I am a business process expert, specializing in credit origination, capital markets, asset management and alternative investing.

Makes it just as tough as hot sellers market because typically properties sell for the anticipated appreciation or the current built up appreciation.

Its going to be awfully tough to borrow 100% of the deal (purch plus rehab) when they have bad credit and very little reserves.I would suggest wholesaling to build up your reserves while you work on your credit.

I'm new at real estate investment and have been reading everything I can on investing properties, specially at Bigger pockets.