mortgage will be about 750.00 a mo @ 20% of 200k Tax is cheap compared to other parts of NJ 400.00 mo.

The more you have, the more options you have.You will need a construction team, an escrow company (or closing agent - attorney in some states), and a title company.Having access to REO and short sales prior to them hitting the market is a key leg up in this market, use that to your advantage.

.- This is what you do.Have a local real estate agent pull sold cash comparables in the area within the last 90 days.

Compare apples to apples and listen

Shortsale is possible but given that it takes 6-12 months to do a shortsale, the 90 day-period prior to auction is too short.John approached me about his hedge fund that can buy notes - "one offs" - meaning one note at a time versus in bulk - provided the unpaid balance is $600K and above (or a jumbo loan).The idea here is get the hedge fund to buy the note at a discount and then I can buy the note from the hedge fund.

Two banks have failed to start off 2014 (one outside Chicago and the second in Oklahoma). 2013 ended up with 24 bank failures half of the prior year well below the recent peak of 2010 (157 bank failures).We will have to see how 'relaxed' the banks are now with the lending policies.Any comments/experiences?

One other thing that is appealing to the current owners is getting a decent rate on the notes they would carry, compared to the fixed rate products that they would be likely to put their money in such as CDs.

How would your rent compare to the going rents in the area?

@Joel Owens I wasn't questioning the reason for the POF, I was just stating the fact that I have rarely been asked.We always require the financials prior to traveling.

Simply by doing a drive by and running comparables this house completely redone can be moved for a easy 175k-200k.