We look for new rehabbed properties, and while we probably pay more buying them off the MLS in move in condition - we do not have the time to complete a rehab or have to deal with constant repairs.

I'm trying to avoid that route for now, and 25k limits me to having to purchase a mobile home near 10k, while I use the other 15k for repairs.

To play it safe if possible you would have to buy at historical lows and hope to sell during an upswing:) the south side shuffle:) if you can buy at $15k w minimal $10k repair and rent each side at $1k those are preposterous returns but it sounds like it will all come back into eviction and turn.

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.