This is my 2nd property, bought from a friend that had to move. I knew he took care of the place and that it would be rent ready. A friend needed a place to stay for a couple of months, which worked out great for me because it gave me time to become familiar with how everything worked, since I would be self-managing.

After a couple years, I started renting to Sec 8 tenants. I've learned a lot about how the system works. In my opinion, Sec 8 tenants are great!

What made you interested in investing in this type of deal?

The advantage to this deal was that it was owned, and lived in, by a friend that was had restored homes. So, I knew that things would be done right and I wouldn't have to put any money into it before my first tenant.

How did you find this deal and how did you negotiate it?

This deal came to me through my realtor, who I had introduced to my friend. I was given first crack at it before it hit the market. The value was FMV and housing prices were going up, so there was no room to negotiate.

How did you finance this deal?

I financed this deal through family members in retirement. I drew up a loan form and secured their funds through my 401(k), since they didn't trust real estate values. They financed over 90% of the deal. It was an interest only loan at 5% (reasonable at the time) and they could call the loan at any time after one year, with a 60-day notice. I figured that would give me enough time to refinance.

What was the outcome?

I bought the place with little money down and it's been a great rental for me! Also, I've learned a lot about managing tenants, Section 8, repair, home warranty companies, etc. The education has been the biggest gain for me. And, the appreciation is amazing, if I ever sell.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My realtor in the area is Ken Mayer at HUNT Real Estate ERA, T: 602-750-3678, License #: BR529794000. He has owned a condo rental for a while and has been a great sounding board for me. The thing I like about Ken is that he always finds answers to my kooky questions.