This post has a series of videos starting starting a self-directed IRA and using it to buy real estate. Recent calculations using Germantown townhomes show yields in the 7% range. I hope this will help get you started

The current combination of low real estate prices, low interest rates and rising rents will allow people with regular investment financing to have  positive cash flows right away. We have found several neighborhoods in Rockville and in northern Montgomery County that will positive cash flow right away. Here are two good neighborhoods to start your search: Wheaton Woods in Rockville and Brandermill in Germantown.

Next Post: Doing the math.

A short sale is when a home is sold for less than what is owed and the bank accepts the sales proceeds as full payment. This type of sale is becoming more prevalent as market values go down and unemployment goes up. It can also happen when loan rates reset and mortgage payments become too high.

This is often just as difficult for the homeowner because the home is still lost. There are two main advantages to a short sale. First, if done correctly, the bank will not pursue the deficiency. Second, the damage to credit scores will not be quite as bad.

Since short sales homes often sell for less than full market value, a lot of them in a neighborhood can bring prices down even faster.

This is one of an ongoing series of posts about short sales because of their influence on home values