Even if your unit is amazing quality renters might not want to be there because of the other buildings or other landlords are dropping rent fast rather than updating the buildings.Pro for bigger complexYou can scale the business effectively.You can control the whole look and feel of the development and tenant base and not be as affected by outside forces with your investment.If you by a large enough size you can employ a full time property manager and maintenance person so you can truly be hands off and passive.Cons- Harder to sell - I disagree with this as typically house investors or little duplex etc. is a different buyer base than a larger apartment building.For example I have a large buyer base of multifamily buildings because that is what I focus on.

When speaking to a mom&pop LL, let them talk, they will likely say things in conversation that you can't ask, like thier health issues or if they drink too much.If you verify employment, it's date hired, position, salary or earnings, and likelyhood of continued employment, you can also ask if there are any expected layoffs or future hours being cut back.

Thank you everyone for the responses, Eric Hettena my employer is a significant commercial real estate developer with quite a few zeroes in the bank.

lolI'm trying to learn a new investment strategy each month and look for opportunities to employ it soon thereafter.

My first two investment properties were local to where I lived in suburbs of Los Angeles but cash flow was 300-400 per property and seemed like it wasn't going to add up quick enough to replace full time employment.

I work full time in IT and am pretty happy with the career, but after watching my fiance' transition to self employment, I am eager to explore opportunities.

As for the project manager, I have mine keep a time card, and I pass on the actual cost at the project level (just like any expense) plus a 20% labor burden that covers employer payroll taxes, workers comp, etc.

I am self employed and have S-corp.Lender counts profit sharing plan as expense and not income on personal side.

If your work is x miles away (I think it's more than 75), they'll likely ask for written notice from your employer that you are allowed unlimited telecommuting or some other proof that living that far away as your full-time residence will not affect your employment in any way.

Since this is your first time, you may want to decide and document what your rental criteria will be regarding employment, credit & background check, the documents the prospective renter will need to submit, your actual lease will have to be in accordance with your local/state landlord tenant law and what your deposit will be.