Real estate is a wealth building tool - rate of return is one of the most important aspects of building wealth - and taxes really impact rate of return.A few "rough" numbers: Scenario 1) You have $150k of equity able to produce $38,400 in income (25.6% return on equity per year). 

And how do I go about the managing aspect of it since I'm new? 

The 2 most important starting out aspects are marketing and networking.

Once you think the numbers work then start calling people that are running ads and one conversation Should lead to another and hopefully you'll find enough reasons to fly out and meet some new contacts.Account Closed is correct there's a broad spectrum of deals to buy from a total gut job to a full on turn key program.I'd definitely stay away from fix and flips in the beginning and look at light rental grade rehabbs to full on turn key.The most important aspect of out of state rentals is the property manager, for this reason I finally decided to partner with a management company in Michigan to help protect mine and my clients assets.Ohio, Michigan and Missouri are still under valued and offering good returns.The detailed kind of information you're after is more of a phone or sit down conversation.

We spent over a year looking for this property and nailed the reno budget in every other aspect, but if we have to spend $25k on lead abatement then that will wipe out over a year's worth of CF....How do you guys handle lead paint in your rentals?

Good way to learn about real estate and get some aspect of the industry under your belt.

@Arturo Borges you've made a dozen posts all asking about different aspects of building a spec house. 

Need proper insurance in all aspects that's for sure. 

I bought a few brand new townhomes here in Utah and I really like the new aspect if you can get the numbers to work.  

Finding homes as investments has lower criteria in at least the finding aspect than finding the forever home.