I've been reading throgh some of CBRPOWER's post. I one of them he talked about a strategy he was using to find cash flow houses. He was purchasing in areas that were nice, but were not overpriced, but had good rental income. So, I thought... where is this happening right now. Well, it's actually happening right here my own neighborhood. My area is saturated with REO's. So much that you can find some houses under 100k if they've been on the market long enough. I don't have money, so I was going to try wholesaling some of these deals, but the banks are being very strict. So, I thought what if I use HML and purchase the house for my own portfolio? I was figuring that I could create a cashflow between $200-$500 per month. My only concern is when I go to traditional financing. Am I going to have a hard time getting a traditional loan for that house because of my poor financial situation? Or will the lender look at the fact that the house has been creating a positive cashflow of x amount of $ each month and I have a signed lease or rental aggreement with a tenant for the next year? Any suggestions or pitfalls?