If you're a single mom with student loans, a car payment, and living paycheck-to-paycheck, then $20,000 would be devastating and a reserve is critical.

The important distinction is whether the auction is for either property taxes OR for a mtg foreclosure….as each one has different legal implications, ie. redemption periods, what mtgs/liens/judgments, etc remain with the property and the new owner verses which ones get wiped out.

I've finally started driving for dollars looking for deals and have had success with finding people that will let me wholesale there houses.. but i cant find investors in my area that are looking for deals in either the city limits or out on lake sam rayburn.. its hard not to get discouraged and just give up i have 4 houses to look at next week on top of the 3 that i already have under contract.. thank you for any advice or criticism that is given

If you have a high credit score, PMI should be cheaper and you should get a conventional loan.Also, another important distinction is that mortgage insurance never comes off of a Gov't loan. 

@Edgar SanabiaThe permitting & zoning is critical so def look into that and just reverse engineer from there.

Insurance is critical if you are trying to building wealth.

Once you get critical mass you can use cash flow from other properties.

@Linnea Minnema I drove through the area and there is a distinct difference from Crestwood.

Screening tenants and then dealing with them after they move in is both part art and part science, and it’s a critical skill to learn if you plan on owning rental properties as part of your investment strategy.

Property #1 is critical to maintaining the commitment long-term, so it needs to be something you can learn from but also enjoy owning in order to make it to the long-term snowball stage where things start to get exciting.