That might have actually happened on a very limited number of mtgs, or not, but that's mostly delusional, wishful thinking......or just more BS promoted by foreclosure defense attorneys looking to snag clients.

For something undervalued on the MLS you would probably have to find something that condition will limit the financing options.  

newbie question, are the smaller local banks limited in the same way the big guys are if they aren't going to sell your loan?

It DOES include taxes and insurance.Your analysis seems to be missing some potential big ticket items including but not limited to:InsuranceHOA FeesRepairs ($1000 per year seems low, that's only $83 per month)Landscaping/Grounds MaintenanceProperty Management (include it even if you will self manage for the time)

hey Luke, I will give you my limited experience.  

Sometimes it's limited by the SPD, other times you can invest in ANY thing the brokerage offers (their interpretation of "self-directed).A true self-directed account is held with a custodian who invests the funds in the account as YOU direct (hence, "self-directed") and investment are options are only limited to "any investment which is not a prohibited transaction".

And then some do but they have a limit on the number/percentage of units within the HOA that can be rentals at any one time. 

It’s a good idea to include penalties for erratic payment, but even then some may still push the limits.

Apparently, you can take unlimited deductions with a professional license as opposed to the 25k limit in a passive cashflow.

Agreed with a lot of what Don said, but will add my own 2 cents.I am actually thinking about trying to do something similar, by acting as general partner and taking on limited partner investors through a limited partnership.