One full of clauses and requirements that will ensure your tenant tows the line and doesn't damage your property....then start concentrate on getting applicants.

Choose a location based on factors including:Rents increased faster than inflation.State and city populations increasing.Metro population > 1M.Low crime.Low operating costs.Tenant SegmentAfter selecting a location, choose a tenant segment with a high concentration of reliable tenants (by interviewing multiple local property managers).

If you concentrate on Income generation which would be one concern you might have then I would research what similar units in your area are renting for.

Do you go in with a long list of potential properties, or do you only have a few that you concentrate on and hope they don't get stayed or continued?

I don't have enough info to pass judgment on the mentor, but the suggestion to concentrate on newer houses with less maintenance is counter to most of the logic around REI - newer houses may have less equity, and without a distressed condition, there is less justification for offering a heavily discounted price for the property.

Michael, As you look to scale your portfolio, some things to consider/look out for financing wise from a scalability perspective are the following:- Concentration Limits --> not sure if you're currently going conventional or intend to in the future, or if you qualify, but conventional lenders following agency guidelines have an absolute maximum of 10 rental properties.

There are environmental issues in every state about the concentration of these systems.

Account Closed It's only 20 minutes..Most of my SFR concentrated in Birmingham..

==============Depending on what kind of non profit...There are few lenders in that area.Churches get underwritten based on giving units...not profits...and the number of families in a church...and the concentration of the donations by the largest 10% of donors//givers....Risk Magazine just rewrote the guidelines for churches.....and how to underwrite those loans.Non profit schools and hospitals (Charter schools)  get treated differently again....and there are two lenders that will raise money for those based on a private small bond offering...but more expensive than a straight bank loan.Hospitals and  assisted living facilities are treated differently again ....So some more info on the type of NON PROFIT info would help us assist you better....Please find a bank that understands those...as your average banker only understands DSCR and commercial finance is most comfortable with a profit driven enterprise....Non profits get underwritten differentlyI  just completed the loan process for our church for $1.5 million for the land to be followed by a $7 mill construction that I shopped to 3 credit unions and 2 commercial banks...

If you lose your concentration it's pretty easy to make a costly mistake.