However, I'd like to emphasize that renting to friends or family members could potentially strain your relationship if they fail to pay rent or fall behind.

This is the 7 step process I use when handling tenant disputes: 1) Open Communication: Contact your tenant in a friendly tone, acknowledging their positive qualities as a tenant.2) Explain the Issue: Describe the problem with the unpaid electricity bill and its impact on your credit score.3) Propose a Solution: Suggest sharing the prorated amount for the period when they were in the property as a fair resolution.4) Highlight Timely Communication: Emphasize the importance of promptly informing each other about such matters in the future.5) Reiterate Appreciation: Remind them of your appreciation for their positive contributions to the property.6) Listen to Their Perspective: Be open to hearing their side of the story.7) Document the Agreement: If an agreement is reached, document it in writing for clarity.

@Eric DeVitoI agree with the above posts and want to emphasize the importance of creating a good team.

but I think it's worth emphasizing... so here goes.it's much, much harder to invest for cash flow now than it was 5 or 10 years ago.

I don't want to downplay the importance of location, but I do want to emphasize that a rockstar team can bring you success in any of these markets and should be highly considered when making your selection.

Cannot emphasize enough the "positive cashflow from day one" concept.  

Instead, I wanted to emphasize that research is the key!

I cannot add any more to what was already discussed above by James and Justin, however, I would like to emphasize number three of James' answer becuase I find that no matter how prepared you are, there is usually a hiccup.

I'd like to emphasize something about the point made a few times above: "Most banks will bring the depreciation back into the income line, when figuring Debt To Income ratio for your next loan"Most banks, unfortunately, doesn't mean all banks.

I am going to suggest back decks and porches....as a way to handle this recent change (along with emphasizing smoking of anything should be outside)...