What I really like about investing in short sales is you will not risk ANY of your money and have virtually zero liability. That's because you can use the the Option paperwork. You simply secure the option to buy the property sometime in future (usually 6-12 months) and you only risk a non-refundable deposit that is usually about $10. You need to see what is considered "consideration" in your state. This is usually less than $100 for almost all states.

People ask me all the time "How did you buy so many properties so fast?" There is no easy answer for this. The process of buying a house gets easier everytime you buy one. It is kind of like starting a new job. Your first day starting a new job is one of the most uncomfortable days of your career. The second day gets a little easier and by the end of the first month you are capable of doing your job in half of the time it took when you started. That is really the biggest secret to my success. Repetition.

1. Interest
Interest is often a landlord’s single biggest deductible expense. Common examples of interest that landlords can deduct include mortgage interest payments on loans used to acquire or improve rental property and interest on credit cards for goods or services used in a rental activity.

2. Depreciation

In an article posted on Forbes.com on Jan 28, 2009 the objective of seeking out poor markets is highlighted in stats in this article.

http://www.forbes.com/2009/01/28/reits-housing-prices-intelligent-invest...
This week saw signs of health in the housing market as existing-home sales rose 6.5% in December. As sales have increased, prices have fallen, down 15% to $175,400 for the median home. Home prices are now approaching 2004 levels, which is about a year after the real estate bubble started to form.

OK, so I admit that I have been holding back a bit. I buy real estate really, really fast. I push my self very hard even though I don't have to. I could just take it easy and enjoy the good life. My problem is I love figuring out new things that other people don't know yet. The way I do that is I push beyond my limits almost everyday. Once I am beyond my own limitations and I am doing deals that I can't afford I get backed into a corner and I go into survival mode. Survival mode is a very painful,scary place to be, but it is also very satisfying once the problem is solved.