Here's a good BP podcast that covers this topic:http://www.biggerpockets.com/renewsblog/2013/08/01/bp-podcast-029-peer-to-peer-fix-hold-dawn/

So that part is covered :) I was thinking the south/eastern coast will likely be the most likely at this point.

These expenses need to be covered in the rental amount.

I think a lot of fears are based on "what if" and if you have those covered, then what else is there to fear?

No, it's not illegal.If it's on a MLS, it must cover the sales commission as well as the listing broker is responsible for settlements and the co-broke fee unless the other selling broker/agent has a buyer's agreement.

I am looking at buying my first rental property and wondering what strategy makes the most sense, I have some cash can buy one house that might not be in an area where the value will go up anytime soon but has slot of renters and the house would need little work if any before its ready to rent, option 2 would buy maybe 2 in that area but they need work so can use a credit card to cover the repairs and help build my credit ( I have a good score just not a real long history which the bank dont seem to like) option 3 would be take the cash I have to cover 20% or higher of a down payment on a house in a better area where rent is 300 higher on average my goal is to buy and hold and rent maybe down the road get into buying and selling thanks for any opinions

They're asking $66k and it's been on the market the better part of a year.Estimated Rent: $700Vacancy: $58 (1 Month/Yr)Taxes: $105Maintenance and Repairs: $105 (15% of rent)Management: $70 (10% of rent, though I'll actually manage it myself)Insurance: $50 (estimated)Tenant will pay utilities.If I assume a 5.25% interest rate, 20% down, and want a 10% Cash on Cash return, the most I could offer is $47k with the seller covering closing costs.

Any originator of a secondary market loan stands the risk of having to repurchase a bad loan, while they are insured the originator is not totally covered and they may see more of a reserve requirement to cover any loss, the originator may feel more comfortable at 90% where insurance coverage may be increased.

Has anyone acquired investors to cover their down payments on rental properties?

I came across a 23 Unit Apartment Complex for sale in my Search for motivated apartment building owners and after getting some detailed expenses from the seller I realized that the owner isn't making enough on the property to cover his own debt service.