Is It Worth It?
I am looking at buying my first prop. It is a townhouse type, no association fees. Built in 1982, 3/1, Asking price is $54,900. An old lady lived in the house and it looks just like it did when she moved in. The question after I pay debt service, taxes, water sewer & trash, etc I will cash flow around $100-$150 a month. Is this o.k.? The mortgage is getting paid, I am not getting rich, but someone else is buying me this house. Thoughts and opinions... 
Also thoughts on buying a house with a tenant already in place... Good or bad?
Thanks for the info, I guess it all depends on how much of a rate of return I am looking for.
What was it that attracted you to trying to invest in real estate?
[addsig]
Each state might be different, but the security deposit should go to the new owner. It should be on the HUD statement. You should also sign an assignment of lease.
I would not think that you could subtract the loss of rent from the security deposit. But whether you should get compensated for your loss of 1/2 rent from the new owner or not is negotiable. I have had it both ways when I bought rental units.
If there is a good chance that the tenant might pay it, then you should get the 1/2 month rent owed on the HUD at closing. If there is not a good chance that the tenant will not pay, then you should not get reimbursed for a lousy tenant that you placed in the unit.
Brenda