I am not new to investing. I've just never pulled the trigger on a deal. While driving for dollars after work one evening, here in Las Vegas I ran into a 3 bedroom 2 bathroom house with a small "for sale by owner" sign in the front yard. The house was in awesome shape. I called the number immediately and left a message. I few days passed and I received a text from the owner saying that he had found a buyer. I wasn't sad. In fact, I was a little relieved. In concept, I know what needs to be asked but conversing with a seller frightens me for some reason. I promised myself I was gonna land my first deal this year no matter what. So I texted him back (way easier than talking) and said, "Hey If you ever have any other properties for sale could you keep me in mind?" He texted me back, "Sure!"

5 days later I got a call from an unknown out-of-state number. I answer and it's the seller I texted back. He tells me he has another 4 bedroom 2 bath for sale that is off market and if I was interested. I mumble out a nervous yes and he says he will send me the information on the house. 300K is the price he wants. Immediately I realized that it would not pass the 1% rule. I go home, crunch the numbers and I just can't make them work. I explain to him that I do not want to waste his time and thank him for reaching out to me.

Today he texted me and says, (verbatim) "Getting your first deal is the hardest. I was once there. My price to you is 270K. I had to fight a lot at home to reach this agreement call me and we will discuss how to proceed. You won't be disappointed."

I have the 54k needed as the downpayment, but he has a tenant living there now with a 1-year lease. At a 270K price point, the present rent being charged would cover all expenses and leave me with $57.00 cash flow monthly. On the other hand the comps in this area are in the 290K-310K range. Any suggestions on what my next play should be would be appreciated. 50 thousand is a lot to part with for such a low cash flow.

Las Vegas, Nevada

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