What was your very first REI? What lessons did you learn?

My first was a HUD house purchased for $8,000. Lessons learned...kick out a tenant who consistently falls short in paying the rent...and who has 7 cats.

My best Real Estate Investment was just "an accident". I bought a 12 Room Colonial to live in for $44,000 in 1975; not as an investment. It had a little 2 Room Caretaker type Apartment that was rented for $110 when I bought it. We kept the same trouble-free Tenant (Not A Caretaker) for the whole 12 years, with an ending rent or $350. Then, I sold the place in 1987 for $312,000. Only then did I realize that it had been a really good investment.

But that was primarily a "buoyant market" . . . . but I really doubt that it commands $312,000 today. There are no guarantees in Real Estate. The Market goes up . . . . . and the Market goes down. People prefer to not think about that last part.

Very first REI was buying a quarter acre lot out in BFE from the tax deed sale for $1,200 and selling it for $3,600 in two weeks. Not a bad start to my investing career. Not exactly a million-dollar winner, but I made a tidy profit and had enough to buy more inventory and sell more. I've been pretty consistent on these little lots for the past two years, never failing to receive less than 50% profits. I just wish they would sell faster. :P

I have read a little about tax sales. Where do you find your local tax sales?

My first REI was a wholesale deal. It was a single family home listed on the MLS with fire damage. I got it under contract and made a wholesale fee of $2,000.

Lesson learned: Never volunteer to waive the commission.

Technically, it's my first home I bought that I still live in. I plan to turn it into a rental when my wife and I move.

Mine is the current house I am still living in, 13 years later, what I learned? Dont ever live in your rehab while rehabbing it. lol

My first real estate investment property was a 3 bedroom, 2.5 bath townhouse which I kept for 2 years. It was a cash flowing rental that I sold when the market went up.

My first REI was a 4 unit and it was a good money-maker...what I learned is to get the property cheap enough so that you can rent it out for PEANUTS and still make money on it. I never had a problem renting it because my rent rates were lower than the market.

Yes buying multi-family cheap gives you the ability to rent cheap and attract the strongest tenants with the most deposit money.

You have to pay attention to one time capital expenses though. Example a 4 unit B or C class that that is 200,000 that needs a new roof,mechanicals,paint,etc. is not a good deal compared to a 4 unit that has all new updates and is priced 10 k higher.

So price is not the only factor in a deal. I always say look at rents in your area and run a pro-forma off the bottom end for your offers.