My partner and I found this deal on Craigslist about 2 weeks before Christmas. It was an 3 bed/1 bath 1000 sq. ft. REO being advertised by one of the local banks. We did some research and found out it had been on the market more than 90 days and they really wanted to get rid of it. We set up a walk through with someone from the bank and saw it didn't need any major repairs most of which we could do ourselves, which got us very excited. They were asking $49,000 for the home. We offered $39,000 and about 3 days later the bank accepted!! We put 2,000 down and closed on January 3. We put another 1,200 into fixing it up which took about 2 weeks, then listed it for rent and we got a family in there on February 1 for $550 a month. With our mortgage and insurance we have a positive cash flow of $170 a month, not much I know but it is a start. We put a total of 3,200 dollars out of pocket into this deal so we'll get a 65% ROI in the first year!! For anyone out there stuck on their first deal or still looking for the first one, DON'T GIVE UP!! My partner doesn't have the best credit and I'm in active bankruptcy as we speak. Just be confident in your abilities and knowledge of the business, go out there and make it happen. Find a good local bank and tell them what you want to do like we did and they may take a chance on you. We proved to our bank we can do this and we're currently working on our next deal right now with them. I'll keep you posted on the next one.