So for that you better be sure to make a profit for the risk involved.

Richard Low There are several issues involved with you question.

Also once you are at those higher levels it involves a lot of research study for the most part , making it not a very passive investment in many respects.

I just don't like these types of properties because the work involved versus the return I would get out of it if successful would be minimal for the time invested.Tax lien and tax sale or different things.

(i did this on one of my own properties) Also if there is enough equity might make sense with your 250k exclusion)On the other hand if you are just going to rent it out or flip it:Rule 1) Here in CA if an NOD is filed and even if its not and they (the sellers) have fallen behind in payments, you could still fall under this code, YOU MUST NOT GIVE THEM ANY MONEY , during there 5 day rescission period.

On day 7 I filed, only for the court lady to tell me that the next possible court date was something like 2 weeks out, ended up Dec. 3rd!

All with $0 of my own and all 3 parties involved are happy.

Here in CO, the lender files a "release of lien" document with the recorded that releases the loan and effectively negates the DOT.

Looks like you have the landlording part started.I grew up with real estate: so the understanding the market is ingrained from following my mom by watching her.I read a lot of investment book, majored in finance, did bookkeeping..Worked as RE agent for a few month (Asia)What I didn't know was: flipping : had to do one to understand Land lording: my flip didn't flip so learnt land lording on the fly Buy/selling: learnt each project from everyone involved from seller/buyer to inspectorsFinancing: learnt on each project just by talking to brokers/mortgage/bankNew construction : chose to work with builder on live in flip.

To formally accept investment money from someone else you should use a private placement and file with the SEC.You can also formalize money with a JV or LLC if you want to take on an investment partner.