You want to make sure that your price is right before you start marketing the property to investors so that they don't discount you as "just another wannabe wholesaler."

You can easily come back to the seller and re-negotiate the price starting at 265k and work your way up from there (a significant discount to what you were willing to pay already).

Most don't want to sell but a few are motivated to sell at a discount.

I also got an excellent discount for having a fire prevention company do inspections/refills of detectors and extinguishers.

Well I would contact the senior note holder if possible and see if you can buy their note at a discount, else wait for the FC auction.

This will probably take someone willing to buy cash for a steep discount, who has an idea of what it will take to get this done.

@Heather Ippolito  if your taking the data from the MLS listing they are listing the annual tax's not monthly  .. what you do need to figure out tho is if the tax's are low because of owner occ status and will they rise when they are turned into rentals.In many states owner occ's get about a 50% discount compared to investors.. they get it through their homeowner exemption...

@Gerald W mcgeeGenerally speaking Hedge Funds, corporations and large capital groups purchase default notes, in bulk, at a discounted percentage of the value of the note.

Garrett Hi Garrett,In order to avoid putting 15-20% down I have to buy the property at a discount.

But for what I am getting for rent from my basement at $1300 and I know I could rent out the main part of the house for at least $1700 I would think the house would cover itself minus any repairs or vacancies that will occur (hopefully there will be some small cashflow to be able to save for those, if not at least I would be splitting the cost with someone)As far as financing the next purchase I may be able to buy the house cash at a discount (with money borrowed against my fathers home which he owns free and clear) and then take out a mortgage in my brothers name.I also have another contractor friend who is interested in partnering up and doing some flips.