I think once you hire an operator, you will have a better understanding of the difficult market you are entering.

Also, my understanding is he is going the short sale route to avoid foreclosure?

@David Faulkner the timber play is a rural lands play and the MLS can be your happy hunting grounds.. but first you have to understand timber.. and how to value it and how to log it etc etc. 

There is a lot, its a lot to understand, and trying to learn everything while making a very large purchase isn't a good idea.  

Whichever market you ultimately choose, make sure you understand in which part of the "real estate cycle" that market is currently in.  

Those considered sophisticated are those that have an understanding of the risks associated with investing.

I understand the importance of building your wealth, but have you considered selling the property?

As long as you understand what you are getting into.

You probably want a 30yr fixed conventional. rates should be 4.25-4.75% or so for this type of loanand you will likely have to do 20% down for a conventional loanTalk to a lender and they will help you understand underwritingTalk to a realtor to help you the buying processTalk with other investors (as many as possible) in your area to understand market conditions

rate/term (i.e. no cash out) are typically 95% LTV, but truth-be-told, I don't quite understand what you're asking.I will say that down payment on a traditional mortgage (i.e. conventional loan) cannot be a loan.