Verbally agreed on first deal
I've been researching and wanting to start investing for years now but always had an excuse (nerves) not to. I recently agreed verbally on a deal ( pending finding a bank to mortgage such a small loan) with a guy who owns 40 properties and is in the middle of downsizing and selling half of them. The house is in a low income area that I grew up in but is very close to booming neighhborhoods. The deal is for 30k on a 2 bedroom/1 bath/ 648 sqft row home. He offered me two other properties for the same price, 3 bedroom 980 sqft but I think that areas is much further off in terms of gentrification. They're all currently occupied with the other two properties bringing in 700/mo. The house I agreed to verbally is only bringing in 625/mo.
I don't think the 30k mortgage and 625 rent quite meets the 50/2% rules but it's such a small deal that it can't possibly hurt me and I feel it may build my confidence to take a real risk. Initially I was going to jump in head first and buy a shell for 80k in a 200-250k neighborhood area.
Any tips, reccomendation, criticism is very welcome.