If there is no appreciation whatsoever and you sell for $300,000, you still walk away from closing with $156,000, but that 4.7% annual return doesn't look nearly as appealing for the amount of work and risk.

Keep in mind they own all the risk until you invest.  

If you can find a motivated seller for whatever reason you can throw some other strategies related to seller financing or even lease option (or sandwich lease option) which I think is a really cool way to get a property without much money but can be a win for all parties involved.

@ Chris Martin, would you say that step 1 essentially involves an assumption of the mortgage?

I have the flexibility with my schedule working 10 shifts a month to go back and forth out of state to stay involved. 

I have the flexibility with my schedule working 10 shifts a month to go back and forth out of state to stay involved.

Hello,I'm posting for an extended family member who is going through a trying time and I think he has gotten some bad / incorrect advice.  My aunt and uncle are elderly, and have reached the point of requiring 24hr in...

They quoted me $14K to fix the problem since permits, DEP involvement, trenching etc. was required.

Foundation issues can be scary, but if you have a good general contractor then they will be able to help you understand the costs involved in fixing them ($10,000 on the high end in my neck of the woods).

Deals can be found in "No Interior Inspection" properties if I catch the occupant early on (like day-of-listing), but otherwise, our REO properties are bid up too high for the risk taken and condition.