Making "low end" rental property work

[James Sinclair]

Some people have indicated that they have good success with low end rental property. I would like tips on how they manage to do that. The property managers that I have talked to won't even accept property that does not rent for $1,000/month. They don't advise people to buy property at the low end because any positive cash flow you might get will most likely be used up repairing the property, cost of evictions, other legal cost, etc.. The issue seems to be that the difficulty of getting a good tenant that will pay the rent on time, not tear up the property, and be stable year over year.

I have had a couple of rental properties over my life, not ones I planned to have, but because of personal moves. I never had a good tenant in either of those properties. I would like to consider rentals as an option but only if I can get to the point of them really being a good investment and not a cash drain. I don't see how $100.00/month free cash flow is worth the head aches? So how do you make it work?