The great thing about the foreclosure market right now is that if you have money to invest there is an endless stream of investment properties that you can get your hands of for pennies on the dollar. Right now I believe is one of the greatest times to invest in rental properties. With people not being able to be approved for loans, and those who are getting kicked out of their house because they could not stop foreclosure. There is a huge market of people that are looking to rent. Truthfully they have know other option but to rent, so guess what if you have a rental property it is not going to take a long time to fill it. Then you have your tenents paying off the note while you sit back and build you investment portfolio. Also, you get to cash flow a couple of hundred off the top during this time.
I think if you are going to do anytype of real estate investing in todays market you need to have an emergency fund of 3-10 thousand dollars in case of an emergency. People loose houses because they don’t expect anything bad to ever happen. Plan for the worst, and hope for the best! Real Esate is still one of the most profitable businesses in the world mostly because there is only so much dirt. Learn the game, Play the Game, and Win.