If you have an unplanned AC unit go out there goes half your profit if you are only planning to make 10K.

While I like the strategy of using FHA to easily get into a property, cash on hand for some unplanned events can make you loose your shirt.

And realize once a pipe bursts, foundation settles, HVAC goes out, roof needs replacement, tenant stops paying and ruined the carpet and walls, appliance goes out, pest control for rodents and squirrels out of the attic, landscaping dies because tenant doesn’t water or take care of it, window breaks, house catches on fire because a dryer overheated, tree limb falls causing damage to a roof, plumbing leaks inside walls of the house and the list goes on.

Well, first you say you want to buy 1 SFH per year--that takes income requirements, and a down payment, and a particular credit profile.Then you will want to have a way (financial ability) to handle unplanned costs and turns, etc...A fixer will take more knowledge than a turnkey rental, but offers additional upside.If you want to do fixers, it seems like a possible manner would be to partner with a successful established re-habber who has a long track record of making money on these deals, and work (on the side vs.

Try to find a local exterminator that doesn't have a fancy car and a big ad in the phone book.Those kinds can rip you off with high fees.There is a difference between pest control and exterminating.I can tell you ongoing pest control is crazy for what they charge.With mice you just do not want to plug up a wall.They will come out in other places in the unit or if they can't get out will die in the walls and stink up the place.The tenants just as with squirrels will complain they scratching and moving in the walls keeping them from sleeping.Also they can chew on electrical behind the walls and cause problems.You have to make sure the unit is clean and stove is clean.Then you have to make sure you have no breeding grounds or trash outside of the property.Also you have to make sure property is sealed well from the outside so they can't get into the small openings.Paying for an exterminator won't help if you don't seal the outside and fix the inside.They will just get rid of a few mice and you will have more again.

This weekend, a family of squirrels broke into my tenants unit via the air vent in the bathroom. 

I do not live by crisis management but I do incorporate the unplanned expenses in the business model tough. 

The old saying, "even a blind squirrel finds a nut once in a while" applies.

I've never owned real estate, and I've got some money squirreled away with which to get into the game.  

Just hire a realtor when its time to sell and they'll handle it all for you...Keep squirreling that cash and reading up.