The whole modern concept of “retirement” really boils down to doing something you either tolerate, or hate for four or five decades while saving up enough money to do what you really want to do when you’re 65 or 70 years of age.

I guess maybe the best answer is assess your tolerance for risk and act accordingly.4) I try to buy homes in neighborhoods that are not primarily rentals.

You analyze the other players, you calculate the size of the pot, you factor the chances of making your hand, you factor in 15 different things, but when you gauge your risk tolerance it needs to be HIGHER than normal if you are going to overcome your low funds.

My risk tolerance is most suited to buy and hold (I think).

Your decision will have to based on your personal risk tolerance and investment goals.

Everyone has a different level of tolerance for stress.

It should always be "working for you" in one form or another.When analyzing a deal, even a "deal you already own", in order to compare apples-to-apples, you should pretend you have a 30-year 90% mortgage, or pretend to take out a 90% home equity loan on your property, pretend to invest that cash in something relatively safe (or risky as is your risk tolerance allows), add the income from that investment to the rental income, and THEN see if it still positive cashflows.

The trick for the PM company is to know the pain tolerance of each owner and to determine that "perfect" fee to charge on every repair...A fee large enough to make the owner say "ouch!"

Your tolerance, and your goals can help you decide which way to go.Darren's idea of a multi-family is excellent.

The main market factors are supply/demand, property tax rates, insurance rates, property values, and other local economic factors.Some others are, what is your risk tolerance?