That's because you want to have enough profit margin to make the deal and risk worthwhile, as well as have enough equity for quick exit strategies, such as selling the property for 85% of its value to move it quick in an emergency.Your payments will largely depend upon the price you pay, your credit and the interest rate you're able to receive, the taxes for that specific area and how much your insurance costs.

It's actually not a bad idea, but it does have some risks.

Because of the risks involved, I went ahead and got my license.

All I'm saying though is the younger you are, the more risk you can afford to take.

(I think this would cause some health risks!?)

I just do it and not think of all the risk and why it will not work With all due respect - that's crazy!

Being an "active" investor versus a "passive" investor, which is where the 750 hour mark comes from, will allow you to carry over losses in real estate to compensate for other gains.

Theorectically any time you buy or sell a house you could be involved with a lawsuit, but to say oh don't buy houses because you could end up in court if so and so happens just is not practical advice.I have never heard of someone refusing to sell when there is an option, and not that it isn't something to process, but to conclude that sandwich options are a VERY RISKY investment because of this possibility seems kind of unfounded.There are risks involved with all investments and adequately and accurately assessing those risks versus the rewards is key to success in any endeavor.

i would pass as well. not worth the risk, and i don't see the bank making the necessry margin

It should always be "working for you" in one form or another.When analyzing a deal, even a "deal you already own", in order to compare apples-to-apples, you should pretend you have a 30-year 90% mortgage, or pretend to take out a 90% home equity loan on your property, pretend to invest that cash in something relatively safe (or risky as is your risk tolerance allows), add the income from that investment to the rental income, and THEN see if it still positive cashflows.