More costly and fewer loans may result less homes being purchased and repaired which in turn means less demand for homes and lower prices and more homes that are in disrepair and “eye soars” dragging down property values.

If you are going to even think about that as an option (a 2nd loan where you receive monthly payments, etc) it needs to be done with your eyes open.

I got myself into one of those catch 22 positions.

However, as my portfolio kept growing, the averages started to catch up with me and I started to have vacancies, evictions, damage, legal expenses, etc (all the things that occur in the real world).

Every single day I search all the new listings for the day, everything that has had a price change and everything pending or sold...I just keep a really close eye on the inventory and whats happening.

Then horror stories from some people... etc. etc.Anyway, I decided that if I didn't do anything now, that I'd always be afraid to do something... so I started looking (Jan of 2007)... and it took me until now to get something that's workable...My criteria for my first multi is that I wanted it to be near where I live so I could keep an eye on it... and I wanted it to cash flow...

Its possible that the owner might catch up the note, and then you would have to accept the payments.

Let's catch up.

The catches are that the property must be my "primary residence" for at least 10 years in order to make it "forgivable" (meaning I don't have to pay the money back provided by the program).

Luckily, I got another job and was able to fight them off and catch up with my mortgage.