Normally my houses are for sale lower than the houses that are forclosed on.I get my leads from distressed sellers and get it under contract for low enough that buyers would rather buy directly from someone like me at a lower price than have to deal with the bank at a higher price.

Quite honestly, Jason, this is a very uncomfortable market to be over-extended in.I would bet that those of us who are low on mortgage payments are sleeping better right now than those who have heavy mortgages to meet and tenants who are losing their jobs and can't pay rent.When you get ready to retire, it is quite nice to have rents coming in and no mortgage payments going out.

That's easy to determine by looking at the classified ads in your local newspaper or talking to other successful landlords in your area.Finally, your insurance cost of $22 per month looks suspiciously low to me.

European investors have been buying American real estate because, with low prices plus the exchange rate, it has been double cheap for them..Probably the change in exchange rates isn't a big enough change to make them stop buying.I know that some of you are following both the stock market and foreign currency.

This is considered the largest annual decline since the last recession of 2001 when banks started tightening credit.The Federal Reserve also conducted a survey in April this year of senior loan officers which reflected that 55% of American banks had tightened their lending requirements for commercial and industrial loans to small and mid-size businesses. 70% of those surveyed said they have made the loans more expensive.With the Federal Reserve trying to keep interest rates low so that money is available to jump start economic activity, the banks are not going along with the plan by holding on to their money.

(sustainable resource)- Use energy efficient light bulbs or dimmer switches (I heard E/S bulbs have mercury in them so I stay away from that)- Install a day/night programmable thermostat- Replace windows with double-pane LOW-E.- Install added insulation (attic, basement ceilings, ect)- Install Energy Star appliances- Convert oil furnaces to gas if possible.- Upgrade furnace to high-efficiency unit (90+ rating)- Convert oil water heater to gas if possible.- Recycle: demo, paper towels, drink bottles, ect.- Replace the toilet (old toilets use a lot more water!)

When they call you back, or you call them to follow up, you could make low offers and buy at a discount.

Here is how I see this deal: Gross rents: $1,200 Operating Expenses: $600 NOI: $600 Mortgage Payment ($80K, 30 yr, 7% NOO): $532 Cash flow: $68 per month (a little low for me) Buying cash flow with a downpayment does not change the quality of the deal.

I started by getting a list of preforeclosure sellers from a financial paper in my area, and started sending them letters every week, only about 30 a week so the cost was low.

I've got a lovely old 20s-era upstairs/downstairs apartment in a low income neighborhood, and it just breaks my heart every time I evict someone and see how they've trashed the place.