@Robert S.I didn’t read your second paragraph yet and about jumped down your throat because wires and breakers must match.

He signed the lease agreement for one year and gave a $600 security deposit.

I hope you kept the security deposit.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

You have to be careful not to give deposits for funding apporval; that is mostly likely a scam.Reasonable costs for appraisals, property inspections are acceptable.  

That still doesn't mean everyone can match his success.A property manager is not always necessary.

What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuitsHow familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?

If you were to keep the townhome, to match the $4,500 positive cash flow you'd have to get $6,500/month in appreciation.

This includes info on how much rent they're paying, deposit held by the current landlord, whether they're current on the rents, and any disputes.

If your wanting to Leverage your money, play Monopoly, Hold these properties for a few years until the equity and your down payment matches that down payment needed for a bigger investment you know single family home exchange for a duplex or quad, then hold these for a few more years improve your position on them and then once your equity matches that of an even bigger investment exchange them into a 20 unit etc.. rinse and repeat.