@Richard C.I can appreciate your concern for the seller, but I don't appreciate your negativity... it's a better use of your time to motivate newer investors, versus providing destructive criticism.

So, from these numbers it’s clear that the PMI, low rents, and somewhat low (10%) down payment are reasons why the cashflow is currently negative.

I don't mean to be negative but I also don't want to just blow blue sky up these folks skirts..

I only went to put the deal together once they teed it up for me.In my timber days we did telemarking...

Now...you do need to stomach the frequent little repairs, sometimes late collections, state or federal agencies (who pay a portion of the rent), and/or sometimes the out of place request, but that's worth 10% for me as I only get about 1-2 calls per month from my PM :)Best of luck how you proceed...

At the momvent I on the <b><a href="http://www.2014snowboots.us" title="snow boots clearance">snow boots clearance</a></b> Cote D and the temperature here today was 33 degrees Celcius.

I get the tenant to pay me 700 a month, I only profit 200 a month.

Personally, I only do earnest money on listed properties, and on a VERY RARE occasion with a private seller.The title company CANNOT play the role of an investment savvy attorney, unless they are actually investment savvy attorneys. 

Am I on the right track or just getting started too late?

@Loren Whitney  & @Dmitriy Fomichenko .......From what I am hearing you guys say about depreciation within a SDIRA, it sounds like (I could very well be interpreting it wrong too) that IF a person was to use leverage within the SDIRA, that somewhat or mostly negates peoples argument 'that there is no benefit to hold real estate within a SDIRA' (meaning no depreciation benefit).