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Thank you all for your replies. I tried to the search function with no success, perhaps I will keep plugging away with more creative search terms. MikeOH - I am a big fan of your thoughts and agree with your convictions. I am hoping to eventually move into REI full time, so it is especially critical that I find good deals, secure appropriate financing, and manage my units efficiently to ensure long-term success. I am not looking for a hobby that might make me some money. Thanks again everyone!

So where are all the properties? I know the good deals are going to be hard to find, and I am ready and willing to do the work. What are some ideas for efficient and effective ways to locate potential rental properties. Is there a good book/website/previous post with good info?

I figured that would be too good to be true. I'll keep at it.

I am getting conflicting answers about this, and want to clear it up since it is potentially important. Mortgages programs are offered for different LTV situations. It seems most investor loans are 80/20, meaning I have to come up with 20% of the purchase price. This proves problematic if one plans to grow his/her portfolio quickly and doesn't have mountains of cash. Here's the twist, is the 80% portion calculated off of the purchase price, or the appraised value? If it is done off the appraised value, I should be able to find a home discounted by 20% from appraised value, and get a loan for 100% of the purchase price, meaning no cash out of my pocket. Is that correct? Or am I only going to get 80% of the purchase price, meaning I still have to come up with 20% of the purchase price. Thanks for clarifying this for me.

Oh definately. I use ING for all my savings accounts. I was just being fecitious with the 0.5% savings account example.

Like a lot of newbies here, I was surprised to find that operating expenses run about 50% of your rent collections. My question is, what do you do with all that money. Obviosuly you are not spending hundreds of dollars to maintain your property every month. Is it just collecting 0.5% interest in a savings account? Do you reinvest it in other properties? Just consider it extra income, and when the roof needs to be replaced get a loan or put it on a credit card? Or do you actually spend most of it on expenses such as insurance, professional fees, and advertising?