This doesn't mean that you can't purchase properties on your own, but the brokers license & insurance cover them and the agents who work for them when deals go down.

The 1st trust deed has impounds that include prop taxes and insurance.

You have mortgage, taxes. insurance, repairs, management fees, etc, and hopefully a positive cash flow.

Then I must deduct all property taxes, water/sewer fees and liability/hazard/fire/flood/hurricane insurance.

Please correct me if this is wrong:From the net operating income I can deduct...annual depreciation (cost of property divided by 27.5 years) +total annual mortgage payment +total annual insurance payment =after tax cash flowDid I miss something that I can deduct... or did I add something that I cannot?

Take that rent and subtract ALL of your expenses (mortgage, property taxes, insurance, maintenance, vacancy, utilities, advertising, etc.).

Besides lender issues, I would also look into insurance issues.

I discovered it last night and probably read the entire REO section.If I get a Limited or Special Warranty Deed on a bank owned property, will my title insurance be sufficient protection?

If a property just went through probate, is it still necessary to have a title search done and buy title insurance?

Within a couple of months I now own a property that the bank appraised for 90k over the price I bought it for.After taxes, insurance, and misc costs, I'm still making enough in rent to cover the mortgage with a couple of hundred left over.