It is possible to buy houses for as little as $400, just ask David Sexauer  He got his start buying properties from The Surplus list, where properties are sold for as little as $1.  His first batch of homes he paid $400 for each one.  Most of there properties are in rough neighborhoods, and in very poor condition.  But, David is able to fix these houses up, for $10,000 or less and make a big social impact in neighborhoods by providing affordable housing. Key To Dealing With Tenants: David has had a lot of problems with tenants, and with bad things happening to his properties.  He overcame this by working with local people that have a personal connection with the tenants and the community.  This is a real win-win.  It provides jobs in the neighborhood for the managers,  good low-income for the residents, and less hassle for the owner. What David Looks For In A Good Deal: How much cash he has available? What is the interest rate? What is the return? He looks for a 2% monthly return (Pays $50,000 expects to make $1,000 a month) Favorite Real Estate or Business Book: E-Myth by Michael Gerber Advice For New Landlords: Stay engaged. Know wh