Our concern is that whenever the tenant figures they've been scammed, which they will eventually, they will most likely get the Police or some other authority involved which as we all know, can make things very complicated.They're paying top $ for the unit and then getting defrauded as well.

One of the largest investors I know just pays a broker a flat rate to post his properties to MLS.

And there is a lot of variance in state law so if you are investing in multiple states you need to check out each state.An investor I know has a pre-nuptial agreement (could also be a post nuptial agreement) that gives him the authority to sign any documents on his own without spousal signatures.

(We have 15 units.)I also maintain vendor files.I keep reference materials in separate files/notebooks/drawers for Washington Landlord-Tenant Law, Housing Authority (Section 8), Police/Sheriff Partnering, Fire Marshall-Fire Safety, Tenant Screening Resources, Utility Companies, Rental Association, Legal Counsel, Partnership Minutes, Education Courses we took, etc.I keep a notebook record of standard materials we use, written descriptions including paint samples, flooring samples, etc. with some photo examples.We store and organize most of the property photos in the computer in iphoto.We produce our marketing materials in the computer, such as business cards and advertisements.We keep hard copies of the bank statements, credit card statements, mortgage statements and purchase agreements in binders and archive them at the end of the year.Our bookkeeping is on the computer in Quicken, which allows us to easily look things up, categorize and send electronically to our tax preparer at tax time.Our tax preparer files electronically, keeps an archive record and each year delivers to us hard copies of our tax documents in a labeled folder, which we store in a filing cabinet.We also have a small library of reference books, magazines, newsletters, etc.That's most of it.

And I agree, if I were to do that I would need a massive discount.When we were originally speaking with the seller I checked the title and he was the only one on title so I thought we were dealing with a seller who had 100% authority to sell.

I currently work in auditing housing authorities and developers that are involved in HUD and LIHTC.

There is less than 250,000 people living in what most of you in the lower 48 would call a small town.For Alaska, it's the largest "city"… I think Fairbanks is about half the population, and where I'm from… Sitka, Alaska is the fifth largest community.

They were willing to add him as an authorized user.

.$42,500 (Down Payment) + $19,500 (Repair + Closing) = $62,000 Investment BasisCash flow = NOI - Debt Services (I just calculated 25% down on 30 year fixed at 7% - about $850 / mo)Cash flow = $11,859 - $10,200 = $1,659Cash on Cash: 2.7%For the ROI: Using JScott's spreadsheet (the author about the post above), I calculated about 4.8%Anyways, I'm sure you're busy figuring out if you want to make the deal or not, but if you ever have some time, I'd be curious to know how you ended up with your figures and what mistake I made in my calculations.Thanks!

These loans are generally to non-profits, they may private or partner with public housing authorities and the purpose to serve low and very low income persons.