I'll second what Scott has said (with major emphasis on lawyer to review docs)Also, when I saw "craigslist", I cringed a little...

In December I had 1 vacant unit out of about 300, today I have 16, including one house just sitting for 3 months just waiting for the contractor to become available (major renovation).

The key here is to bring the house up to the neighborhood standards for rentals and to be sure that the major systems are in good order.

I am looking to start investing in the Temple University area b/c there is a major shortage of student housing.

The formula is just a starting point and prevents you from making a major mistake by paying too much for a property. 8)

Therefore, to determine your cash flow, subtract the mortgage payment from 1/2 of the gross rent.You should also be aware that the vast majority of people who lose their house to you will not be able to buy it back.

That is why the majority of newbies fail.

And any help or what to watch out for.I am not going into this as a major money maker but I just wonder how likely a condo or other vacation property will keep up or ahead of inflation or be about the same as I would make on conservative investing the same amount.I am just starting to think about this so if you can point out any good things to read or just tips in general it will be greatly appreciated.

Most major cities have excellent cashflow about an hour outside city limits.Tim

I live in Bridgeport Connecticut, which is on the verge of a major renaissance, and I want to be a part of it.