It sounds like I'll be able to learn a lot and they will mentor but 40% seems a lot lower then I was expecting.What do you guys think?

Disadvantages: You may pay a higher rate, then again you may not turning the only disadvantage into an advantage.Advantages: Jon mentioned some, the fact that you may get a lower rate, not on credit report (unless you default), low to no clsoing fees, no 3,000 page docs to sign from lender, banks (the current enemy of the people) make no money off you - probably the biggest advantage by the way!

Use 50% as the lower bound and look out for anything that's making them higher than that.

We have lowered the price to just above what apartments are going for.

Has anybody ever called up the IRS and tried to negotiate a tax lien lower than what it was originally placed as?

You could probably find someone who would pay you that on CDs with no tenant messes or smoking.Is the agent willing to make up your difference if you sell it for a lower price in two years?

I might as well take it out in full as planned.Don't think I can switch my inher IRA to a Roth IRA without having to pay the taxes.I'm not that concerned about earning income on a tax deferred basis (IRA, 401k, etc.) would rather earn income and pay the taxes as I go. they'll be lower now then they will in 3,5, or 10 years.

There is a sticky thread about it.For lower priced houses, I also use the 2% Rule, which just says that the gross monthly rent needs to be about 2% (or more) of the acquisition cost (purchase price + rehab) if they are going to cash flow properly.

The builder has lowered the price to 675k plus 50k in help to the buyer.

If they counter at full price or just a bit lower, then you know that they are not interested in taking a huge loss at that time.