In the world of real estate, they are many a publication that will tell you that anyone can buy real estate with no money down. In the real world, most will tell you that the only ones who make money on that “promise” are the ones who sell the books, tapes (are they still around?) and CD’s.
In truth, you should have good credit, some money to invest, equity in your home of residence, or an investor who wants to partner up with you and be willing to reinvest some of your profits back into purchasing other homes.
First time home buyers using an FHA 203K program can get housing, yes cheaper than rent. Two of my children have purchased foreclosed homes and have low house payments and equity even in this market that is tough to do so.
For most of your questions on financing, I would refer you to a professional in that field. I bought and sold 14 homes just using an equity line of credit on my home. I still own 3 investment properties, all with positive cash flows of hundreds of dollars a month after expenses and excellent tax write offs each year. I have owned them for 11-14 years, bought two of them on Land Contracts, and the third I financed.
One very attractive reason to buy and sell homes is that true, you have to pay capital gains on the profits of each sale, but what used to be a penalty is now just according to your normal tax rate, each year. In other words, you should only pay taxes on the rate where the rest of your income allows your Gross net income to fall.
If it’s 15% that’s where it is and so forth. Also if you do your own work and your profit is larger due to that fact, you pay no self employment tax. So it’s just the basic tax rate for Capital gains.