I thought I would share my first deal with the community and give props to bigger pockets for all the great real estate advice that can be found throughout this entire website. I have been reading these forums for 2 years and finally pulled the trigger. It truly is the the best information imaginable. Thanks!

Deal completed on December 1st, 2010:
Townhome (REO) - 3 bed, 1.5 bath, 2 Car Garage
Purchase Price: 38,800, Repairs = 7,000 (This includes a new roof, siding, and a furnace)
Total investment = $45,800
Rented at $850 a month on a 2 year lease.
We financed this conventionally for 30 years @ 4.875
Comparable sales in the area for the same townhome range from 65,000 to 85,000. Majority sell within the 70's range.

50 Percent Rule Breakdown:
P/I = $45,800 @ 4.875 = $243 a month
Expenses = $850/2 = $425
Monthly Cashflow = $182

Note: It took a little time to find this deal as the location is in a very nice suburb of Kansas City where 50 percent rule deals are very hard to come by. I could have bought a rental in the city core and met the 3-4% rule! however, I would like appreciation and manage my investments on my own without fearing for my life (just thought I would throw that in there).

Second Opportunity:
A townhome connected to the one we just purchased just got listed on the HUD website for $44,000. However, it is only available to owner occupants until this Friday. I have private funding lined up to put a cash offer on this townhome as well. It has the same characteristics as the the first townhome we purchased (3 bed, 1.5 bath, 2 Car Garage). However, this one doesn't need much in repairs besides cosmetics. I would like to go in at 35k for this one. I think the listing price of $44,000 from HUD is based on the most recent sale in that community (my purchase right next door) of $38,600 which was a REO Foreclosure. I think they listed it pretty low for the area, there mistake is my benefit! I spoke with the HUD agent and they said they think there was a owner occupant bid on the property so I may not be able to even bid on it. I will keep everyone posted on what happens.

My plan for this property is to fund with private funding and then refinance to a conventional in 6 months.

Thank to all who post on this website and provided me with great insights and information. All feedback to greatly appreciated.