One of the most important parts of their job is to advise you on how to build safe and legal housing.

So based on what you highlighted in your post, several conditions could be present.  1) real estate market is flat, 2) area the properties are located in or the property itself is not desirable, 3) there are other factors that 'drive' up the actual costs on the property, 4) property taxes in PA are really low to begin with, 5) competition is low, 6) other reasons, 7) none of the above and they were in the right place at the right time.  

This deal is not going to be accomplished safely as most approach an option to purchase, your agreement could well be 100 pages or more, addressing terms of sale, how liens for advances are applied toward the purchase, your interests acquired prior to other liens filed, insurance assignments, that's not counting lease assignments, attachments of lease terms and conditions, maintenance agreements and schedules, authorization to encumber the property and to pay liens.

You can RSVP here (an account is required) or simply show up - but registering would be helpful so we can plan accordingly with printed materials: http://www.meetup.com/Networth-Investors/events/22...Light refreshments will be served - please note that Somerville is mostly resident parking, so be sure to give yourself some extra time if you're driving in, try to carpool, or take the T.  

You are responsible for maintaining safe and healthy living conditions for whomever is living in your property.

I personally focus on wholesaling houses that investors can be into for less than $30,000 and rent for $850+/mo in safe neighborhoods.

However, in either case much like you don't get an LLC to drive down the street I am not sure it is a necessity.This is even more true because if you do the LLC wrong it is not useful because someone could easily pierce the corporate veil.

P.S. they would not give me the mortgage service pmts so It's safe to say this property is in the hole for the past 5 years even if there payments were $500 a month.

So you need to take the time to figure out your own “why” so you can maintain the motivation and drive you need when things get hard.

What drives the success of this deal is the equity partner that is in line that will recapitalize the seed money.