Most wannabe investors get stuck in paralysis of analysis and are always chasing the next shiny object.  

So, I don't chase tax liens or distressed notes, and would never lowball someone who is caught up in a short sale bind.

Lots of great areas for good cash flow without having to go into the rough parts of town (although a lot of people do chase what appear to ridiculous cash flow numbers and end up in areas that I would never invest in, but I digress). 

It's not recommended to install plumbing chases on exterior walls in cold climates.

When I was a Realtor working conventional real estate I decided that I wanted out, I was not happy chasing listings and working with buyers only to see the deal fall apart after working on it for way too long (with prospects of earning a very small shared commission) only to start over again, I knew there had to be a better way to make money in this business.I decided to go to work for a local auction company, boy, was I glad I did that, selling real estate for all cash, as is, getting paid large fees and the best thing about my new career was the freedom to work less, work smarter and make more. 

Push the cashflow to 10K.  1K isn't exciting.Keep the momentum.Frank If you're chasing numbers, allow me to share something I learned in a lot of higher level math courses: they don't end.

My only additional advice is to work with a local bank versus a large bank like Chase or Wells Fargo.

I bet those kids would think twice if a murderous clown chased them away.

*My graph above: Back to 2004-2006 Affordability: Affordability in the core Bay Area has decreased sharply, is headed towards the lowest affordability during our last 2 booms (SF is already there), and the varying counties are increasingly converging in unaffordability, chasing SF (the first to hit record unaffordability, as usual..), as they have done in other cycles.

@Chase London, providing you have bought a "good deal", I believe borrowing against its equity to buy further "good deals" IS a good idea!