I am testing the waters of real estate investing.  I bought my first rental property last spring.  It was a foreclosure.  While completing the GRI program, they had a speaker there on investing in real estate.  He had so many good reasons everyone should be doing this and I will share these over the next few days.  Today, I want to share with you my simple property and how it works for me.

I bought the foreclosure for 115,000.

1989 model with a new roof and replacement windows in place on half an acre.

3BD/2Ba

It rents for 800 per month.

If my 115000 were in a CD it would bring about 4600 per year.

Rent for a year is 9600 less taxes and insurance. Balance then is a little over 8000.  I clear an additional 3440. per year by having my money in real estate rather than a CD.

Next topic :  How to pick a good property.