.- They often get sold Class C or D properties while using Class A assumptions - then wonder why they are losing money.Here's some copy & paste info that you hopefully find helpful:-----------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I started investing real estate in 2022, and own a couple of doors in South Jersey.

To add on to what everyone else mentioned, do an end of the lease inspection before they start moving out.

The seller offered financing with 20% down, which I used to buy the place.After starting construction and realizing it was going to cost more than expected, I approached a small local bank that knew the property and would offer the rehab financing. 

I’m thinking a small town could be a great place for me to start compared to big cities.

Do you already own any properties, or are you just getting started and looking to purchase your first one?

Quote from @Greg Gallucci: I'm starting to look into the Huntsville market.

You begin depreciating $200k over 27.5 years, starting from 2023.You do a major $50k rehab in 2030.

Thirty years ago I started purchasing and living in properties in upcoming inner city neighborhoods that required renovation.

Action Steps to Start Building Passive IncomeResearch Your Market: Determine whether your area is better suited for short-term or long-term rentals.