Quote Originally Posted by UpSideDownDesi
the houses i am looking at are mostly investment...foreclosures.... to flip or to lease out...so they are already cheap. I know it's gonna be hard to flip unless i take a loss on profit and mark it down good bit below market value.


I am already qualified for loan. Now mostly lenders require 5-10% down because that's what happened before...people didn't have money got the house with 0 down then year or so down the line......foreclosure. Reason such a boom in foreclosure rate and lenders are being cautious now.


for one. DO NOT RENT!!! i worked for a company that bought investment homes and flipped them/ rented some out.

at one point they had 94 homes. when they went bankrupt, all of the houses had been foreclosed on and they were 350k in credit card debt. they lost their asses big time.

it was partially due to poor management skills, and inexperience, not lack of brains. these people were smart and knew their ****, just not business.

another thing, if YOU cannot pay for the mortgage, your current expenses, and everything else you need to pay for, as well as the downpayment, DO NOT do it.

you need to be able to carry the cost of the mortgage for AT LEAST 2 years, the cost of repairs/upgrades, and the cost of the down payment.


and this should go without saying..... DO NOT GET AN A.R.M. .... you will **** yourself.


if you can afford to pay for everything, go for it.