In addition to what Bill E. said, I try to get a good idea of what expenses could come up soon.  

It may be worth checking with BP collogues in SA, or attend local REI meetings, and get e referral from local folks.

Ryan E. thank you so much for that I appreciate the help

But be sure to weight all factors before doing so, in many cases you will do much better but keeping your 401k funds invested and using other sources for funding your personal investments. 

This deal was very hairy as after we ran an O&E Report, we found out there was a  $37,001.72 IRS Lien, and 5 State Tax Liens totalling $9,750.02.Our Foreclosure attorney assured us the liens would be removed after foreclosure, so we deducted the property taxes from the purchase price and it was ours. 

Asset managers take that into consideration and give it a lot of weight in deciding which offer to take.

Like @Carolina E. said, you can start witha multifamily unit.

Thx again in advance.Expenses Annual Figures R/E Taxes $9,756 Insurance Premium $3,000 Maintenance $4,000 Water & Sewer $3,000 Common Electric $700 Gas Heat/hot water $0 Tenant Paid Management (5%) $3,937 Garbage $0 Ind.

You can also screen applicants (debt-to-income ratios, income verification, background checks, etc.) through tenant-screening services such as TenantVerification.com, ScreentheTenant.com, e-renter.com. 

@Erik E. that sounds like a great goal.