Inflation: Remember we are talking about rental property---rent is subject to inflation (inflation is nothing more then the tendency for expenses [the price of goods & services] to rise over time).

A larger mortgage requires you to ask for higher rent in order to satisfy the cash flow requirement outlined above.As you said, the market dictates the rent, not the property owner.

t=10193where I outlined doing a short sale in CO.It is very possible to do a pre-foreclosure short sale here.

One way to invest with no money is taking property over subject-2.

:lol: anyway, although I'm not a mortgage expert (and perhaps someone can speak up on this subject), I'd also avoid ARMs now.

I do know this about our area: it is highly desirable and there is no new building going on (or very little) due to geographical and political restrictions....as I outlined above, this student community is also unique.....I do think there are unique economics at work here.

In Subject To Investing does the whole idea work around your having good credit in order to take over the payments at the said interest rate and carry the note on the new person you sell it to?

These desperate landlords will do ANYTHING to get rid of the stress, including bringing cash to closing and selling you the property subject to the existing financing.Of course, there are other great deals out there.

Just be SURE to make it clear to them they will be a holdover tenant, subject to holdover rates (per the existing lease or local law) if they stay one day extra!

For example, the subjects at the top could be Low Level Home (Price Range), Mid Level Home (Price Range), High Level Home (Price Range).