What it has done, is created a hardship for honest investors like ourselves.I don't invest in New Mexico so don't know the laws and rules there, but I would ventire to guess you can do them, you just need to make sure you follow the proper protocol.Perhaps some NM investors can chime in.

Jason,Under the new 121 rules you can still convert your primary residence into an investment property, then sell it two years later and still be eligible for your full capital gain exclusion.

I have no problem connecting with the negotiator via small talk and just following the golden rule.

Turns out no bpo has been done (unless it was drive by - they never let anyone in the house), so my chances of getting the bpo done right are still very high.However in their court docs, the judge has ruled for the foreclosure and they have the value of the house at 226.

Looks like an excellent deal:With the simple analysis:Rent: $2400Expenses: $1200 (50% rule, see Rental Property forum)NOI: $1200Payment: $699 ($105K, 7%, 30 years)Cash Flow: $501Cash Flow per unit: $167Very goodAnalysis with your down payment $18,000, and assuming you pay the rehab costs out of pocket:Payment: $379 ($57K, 7%, 30 years)Cash invested: $50,670 (including closing costs)Cash flow: $821Cash on cash return: 19.4%

A backyard investor will buy properties close to where they live and based on the 50% rule, with some in lower income neighborhood.

I don't see a problem with that, but I would HIGHLY recommend you speak with an attorney in your state as they will know the local laws and rules in regards to your legal question.

Not quite 50% rule but 65% and I comfortable with that 50% rule very hard in a somewhat desirable area of Bay Area, CA.But than I go to the properties section a see 8 homes for sale that cash flow for $4800.00 a month for only 160,000.

* Robot.txt Generator, you specify rules for the search engine robots

I have begun analyzing deals using the various rules found here but won't get my feet wet for a few more months.