First Investment Property

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I have always loved Real Estate and owned several primary residences...then when my daughter was ready for college, she and I drove around the city she would be moving to and I talked to a couple of realtors. Nothing clicked. We were looking for something that was not too expensive, that she and a roommate could live in and we could collect a little bit of rent. One day driving in a nice, older area, I noticed a FOR SALE by owner sign on a small house, 2 bedroom, 1 bath. I called the owner and set up a time to meet and view the home. The price was $90K and he would not budge on the price. We talked several times and I said we were definitely interested in the house. My husband and I met with him and he had a friend who was a realtor and we agreed to the price, wrote an earnest money deposit check that was held by a lawyer's office (a lawyer my brother-in-law had used)...found financing through a Mortgage Broker...(put 10% DP and a 10% 2nd TD s therefore no PMI)...this was in May or June of 2005. Bought a 2nd home later that year in 2005, in the same area, a 3 bedroom, 2 bath...the price was $179,500. We bought it from a flipper who used a realtor to sell, we came upon it when he was working in the house. He kept asking if we thought the market was topping!!??! (And it's true that once you do your 1st investment deal, the 2nd is easier). Bought another cute condo in the DT area when the RE Market started going downhill in the fall of 2006...we bought it for $22K less than they had it listed for in the spring of 2006. The first house we sold for a profit...$130K/no 1031/bummer!! Now on Zillow it is listed as worth 154K. The other house and the condo cash flow (Mortgages paid in full) of about 1550 and 1280 per month.

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