their is practically a whole quarter of the town where its very hard to retail a home, your pretty much just going to be selling to buy and hold investors, and our local buildings inspectors are rediculous, then on top of all that, as mentioned above there is 4 big wholesalers in this market, two that were mentioned above, then two that dont really advertise their deals, all of which are very experienced and seem to have unlimited marketing budgets..Anythings possible, but not being in this market is going to be a huge disadvantage, as the margins are just too slim..Add all that to tons of newbie investors who over pay for every "Internet auction" "hud" and "tax sale" "craigslist" type deals ever, makes it a hard market to be repeatedly successful in.. 95% of the deals I look at, Shawn or Wade (the two guys companies mentioned above) have already looked at them, are at the property when I am, or are on their way) they're advertising is top notch and they don't miss much., a lot of times it ends up being easier buying from them, as your time is worth something and when your getting 1/10th the leads they are, and they're getting all the leads you do, it's hard to compete.

For example the actual housing collapse of 2007 saw a 19% drop from peak quarter to low quarter, and 10% from peak year to low year.

I'm on track to buying two more by the third/fourth quarter of this year.Although I don't have a lot of expenses, I want to get more organized as I expand.

Negativity aside, I hope to drop my money this quarter into either1.

The idea is to set it up in a way of deal sponsor / passive investors setup where they get a quarterly distribution and equity in the deal, and for them to be a limited member of the asset that will eventually own the property.1) Do i get it and give them a promissory note with the terms?

That wouldn't be a capital gain, so it would just be ordinary income.As far as when, at the least you would need to pay quarterly tax payments in order to avoid penalties at year end.

I can see what you mean by going through it quickly if I'm paying it quarterly.

Thank you Matt for your replyThe reason I've picked Detroit is that it is the foreclosures US capital, has very cheap properties in nice neighbourhoods , and there is a very good chance that the cash flow would be good.I also know that according to the last data for the second quarter of this year it has rental vacancy rates at 16% which by anyone's standard is very high, but I've also been told that the government contributes high share of rents to section 8 tenants, which could be a stable source of rents even if the City and the region experiences very high unemployment rates.I fully agree with both of you that there is no substitute for being there by myself and learning about the area, and checking properties , but I'm only just starting and to learn about things are being done in your Country.The other thing that worries me about the buyers agent I talked to and who is supposed to get me more info about the house for sale is that he was refered to me by the listing agency and that his surname is the same as the listing agent's.

I was thinking about starting a suburb of sorts, Take a property development of 50 acres, subdivide into quarters and expand as it go's. 

@Frank Macias I also bought a house that came with an inlaws quarters.