We just received loan approval on our first investment property! We still have to sign and record the transaction, but we should be closed by the middle of next week. It is a duplex that we will live in half and rent out the other half. We are using FHA financing at 3.65% interest (I don't think rates can get much better than that).

I am excited and very nervous at the same time. Something about your first property is nerve-wrecking! We will be inheriting the tenant next to us, but they are on a month-to-month agreement. They have been renting there for 3 years now, and it seems like they take good care of the unit when we did our inspection. They are using Section 8 so that'll be a learning experience right off the bat.

I was putting off buying a property for so long, because I didn't think we could afford it. As it turns out, it was a lot more doable than I realized. It helps that we were able to apply the rent from one side of the duplex toward our income to qualify. 

We are getting in to this property for about $3k out of pocket, which allows us to keep our reserves healthy for any unexpected expenses. Being a RE Broker representing myself in the transaction, it turns out I can use my commission as a "buyer credit", which is about $8k. The seller is contributing $2k toward our closing costs and the listing agent is contributing another $2.5k toward our closing costs. (Word of advice here: never ask an agent to contribute part of their commission toward your closing costs or you risk seriously damaging your relationship with them. In our case, it was a very tough negotiation with a stubborn seller, and the listing agent offered her contribution to bring the deal together. I've also built a great relationship with a majority of the local agents in my area, so that helps too). 

We haven't even moved in to this one yet, and I'm already looking at how we can get the next deal! 

Thank you, BP!