I like the spread of rent vs mortgage, look at taxes and insurance and possible repairs.

In other words they will give 65% of the 85% of purchase (and value all the equity I built by remodel/repairs, etc. also at ZERO).

There are a ton of cheap $40,000 - $50,000 homes but they are trash and would end up costing a ton of money in repairs and be constant headaches.How would you suggest I arrange the financing to get the most bang for my buck?

Next fear - major repairs.

The mortgage, taxes and insurance were pretty reasonable, but still money going out instead of into my pocket.Taking into account these holding costs before I could sell or rent made the deal not so hot.We couldn't do any of the repairs based on the parameters of the loan, making it a deal I'd have to manage pretty closely.

No, HUD doesn't care about your problems or repairs.

Costs of taxes, insurance, repairs, servicing, legal fees all add up pretty darn quick.

The best thing you can do is advise the tenants of their rights when major repairs need to be done but aren't.

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

The property needs minor repairs say about 15k, it needs HVAC, inside paint and some siding repair.