The cheap homes look good on paper, but cost a lot more as they often attract less desirable/more problematic tenants.

Adding...turn over and vacancy seem to be the big topics that BP doesn't discuss.SURE a C- property looks like a winner on paper. $800/mo for $40k is 2% rule, that's crazy!!!

Search on google and your state and "white paper" on tax liens.   

Put deal on paper with help of mentor buy discussing pro cons and possible cash flow8.

The numbers may look great on paper, but if there could be a larger threat to your safety than you bargained for, websites like neighborhoodscout.com can help you navigate that dynamic before learning the hard way!

Hi as Steve and Jason pointed out it is very important to keep funds seperate.You will need an escrow account, if it's required by law, your account will need to be titled XYZ ESCROW ACCOUNT, if not so required, it can be any account but ONLY deposits and funds held in trust should ever be depoisited to this account and any withdrawl should be well noted on the check and on your books.If you comingle you accounts and you need paper towels to clean units, the IRS can simply disallow your deduction saying it was used at home since it was paid from a personal account or one of comingled funds.I too would suggest you formalize a business entity, an LLC probably.

When I was self managing I would have paper applications and I had an online company run the credit and background.

It's all within a 5-7 day business day period, which is normal for paper checks and banks. 

Hi Michael,Seems pretty good on paper!

Property is cheap and the numbers look good on paper, but I think reality hits a lot of people like a sledgehammer with turnover costs, vacancies, problematic renters, maintenance, etc.