Per Doug O's request, here are some of the more pertinent details of the purchase. This is a three bedroom, single family house that is currently leased through November 1, 2007 at $750 per month. It's 1,815 square feet and has been recently remodeled. Purchase price is $77,000. Comps are as high as $89,000. Taxes are around $375 per year and insurance is around $465 per year. Based on my calculations, I think I can cashflow near $200 per month with an ROI of around 20%.
The seller is going to be the property manager for 10% of the gross monthly rent. I trust the property manager. I think she's one of the hardest working people I've met. In fact, if you read Building An Empire, you know the person I am talking about!