Since you are concerned about closing costs, you could consider not buying down the rate and thus reducing the costs to close.Another consideration is leveraging more and not putting as large of a downpayment. $212,000 loan @80%30 year fixed, fully amortizing using our Paper Saver process - like stated income but no charge for it6.375% would cost you 1.00% discount point - 6.532% APR$819.80 total lender feesIf you consider an 80/5/15 - where you put 15% down instead of 20%$212,000 loan @80%30 year fixed, fully amortizing6.375% would cost you 1.00% discount point - 6.532%APR$819.80 total lender fees2nd lien of $13,2508.375% would cost you 1.00% discount point ($132.50) 8.513%APRno extra lender fees on the second.So you save $13,250 and have an additional monthly payment on that second of $100.71 per month which means you break even in almost 11 years.

the funny thing is, you'll read these replies, from total strangers and if you get into real estate investing in more depth - you'll increase your knowledge base - TEN FOLD.then you'll look back on this and the next 50 posts or so and say, "wow, i was really clueless."

In places like southern California, property values increase because there is very little undeveloped land left.

A dollar spent does not equal a dollar increase in value, plus the market is in a decline.

Otherwise, you wind up increasing the price you have to pay for the replacement property to balance out the values, right?

Unless you take equity out of the replacement properties and increase your debt you're continuously having to find properties to protect a greater and greater investment or several smaller properties in the aggregate.

I realize I'm very lucky in that I have considerable equity in my home, and I have outstanding credit.I have the typical ups and downs of the first time investor; I worry that I'm too eager and overlooking things, or that I'll lose money, or end up with horrid tenants (yes, I'm going to screen them!!).

In residential, if you buy low and sell high, just be prepared to explain the increased sales price to the new buyers lender, unless its cash.

Also, it might save time because you have less cuts but it increases your material cost.

They fear that we will fail in our investments and express concern over every detail of investing that we mention.We do our best to take into consideration any points that they mention, but we know that their reactions are all based in the fear of investing.