My question is if interest rates range from 4 - 8%, we should be take 8% into consideration because let's say 8% is during very bad times and 4% is in very good times.

And if something bad happens you will have much cash reserves in your IRA to make sure you can sustain any problems.Thank you for your time.

Hi guys, I am still a newbie so I need advise on whether do you think this is a good investment or a bad investment.

Thanks John for bringing this up for I too would like to know if anyone has had and good or bad experiences.

If you credit is bad & you have no cash, you're going to need to use one of the following strategies until you can increase either your cash supply: 1.

No wonder we are in a RE meltdown.Too many people are trying(& buying) that have NO money.Bad things happen guys.You need cash to smooth out the unexpected.2.I'm guessing 99% of the people here own NO RE.I have read only a few posters who i'm sure have real world experience3.Too many people jumping into RE blind.4.People who buy books,cd's,dvds & attend seminars are idiots.A few final thoughts...Bad things happen.You WILL buy a property with a HUGE unexpected problem.Plan for it.You will have a renter smear feces on the wall the day before eviction.You are the ENEMY in almost every tenants eyes.

That's a bad thing.

I think it must be really bad out there and I cannot get my brain around it, or I keep getting buyers that cannot perform.

They sent me over a deal with the following:Appraised Value 80,000Purchase Price: 37,000Rehab Price: 13,000Total Loan: $60,000Mortgage Payment 30 year fix 6.875%: $534 with taxes and insurancetenant rent: 800 month.Equity: $20,000cash flow $186property management is $80 a month Does this sound like a bad deal?

You answered my orginal question, too bad it was a little radical..