I had already understood that reserves would be needed for the investment property, but six months of PITI on your residential property came as an unexpected requirement, and this notice came after my offer and EMD was accepted.

My main goal is to establish a diversified real estate portfolio (mainly residential) as of now and possibly changing once I become more educated in the business.

Beyond that you will need to know how to fill out contracts (TREC 1-4 Residential Resale here in TX, assignment of contract, personal addendum, lead based paint etc).

Looks like CA has pretty extensive disclosures - here is a link to research ithttp://www.nolo.com/legal-encyclopedia/residential-home-sellers-california-your-disclosure-obligations.htmlhttp://www.car.org/media/pdf/legal/standard-forms/478218/

I was buying small balance commercial loans, so if you're looking at single family residential, realize there are likely some differences (especially when it comes to foreclosure, eviction and restructruing processes), but the investment thesis is the same: Buy the NPN at a discount, sell it to another investor for a "smaller" discount.

I'm not trying to steal your course for free or anything, I'm just a new REI that is trying to decide if residential real estate and tenants are really what I want to deal with or if there is another way, as you're mentioning here.

For the best info on tax deeds, watch this three minute video from Sandra Edmond, the president of the Central Florida Realty Investor's Assn.http://www.youtube.com/watch?

I'll check out the site more in the coming week along with Realty Mogul.

I am familiar with working with residential PMs for my properties, but never worked with a commercial PM.What are some of the key considerations when talking to commercial PM?

If you are under 10CCfs (I believe most residential units average around 7CCFs in Tucson) they bill $1.29/CCfs, plus cap charge, plus sewer etc.