While technically the owner of the property if to maintain the deposit(in most states), many Property Managers have been burned by lawsuits when the owner fails to account for the deposit upon move out or more often foreclosures. 

There are houses that I sold 3 years ago, which if I was in my current position I would have held onto...but at the time needed to turn and burn to build up capital, as we didn't have the track record or portfolio to borrow any more money from banks and had tapped the private money we had sourced to that point.As was mentioned on a relatively recent BP podcast, the 2% rule is no longer (with the exceptions of war zones...And so when you allow for capital expenditures and vacancy, you will probably NET the same return and a solid 1% built since 2000).Finally @Ryan Jones, while 1% deals are definitely still out there, they are getting significantly harder to find. 

I currently work as a software engineer if that matters to anyone.I look forward to interacting with everyone on the forums, and I hope we can help each other achieve our goals!

Did you have a place burn or something?

Why give away all of your hard earned blood sweat and tears to someone that wants to burn you?

Now if you have a contractor who you completely trust by virtue of a successful track record in working with you, great.But... if you're just starting out and don't have much experience in hiring contractors and have no existing relationship with one, the odds are very good that you'll be burned.

Also if I don't put insurance on my contract what if the house burn or etc. 

Inspection ChecklistRepair Cost CalculationsEstimate Repair CostDEMOdemolitiondumpster rental ($800) + day labor1400ROOFgutters / downspouts2 of 40ft runs + 4 downspouts500ROOFroofing 13 squares ($270/square)3500EXTERIORpaint and exterior trim + small bit of accent cedar shingle siding over carport to tie new wood front door1100sq/ft single story2500EXTERIORexterior front doornice wood door + poly600EXTERIORexterior windows (if needed) + back slider (if needed)may not need2500EXTERIORlanscaping/ grass/ tree trimmingseed grass; boxwood bushes; general clean up / pressure wash / etc1000EXTERIORfence145ft ($15/ft)2200EXTERIORdeckconcrete top coat on patio250INTERIOR GENERALelectrical and plumbingminor work2000INTERIOR GENERALframing and drywall/ textureexpect minor1000INTERIOR GENERALcloset systems for 3 bedrooms$300 buget per closet900INTERIOR GENERALinterior doors8 doors + hardware1600INTERIOR GENERALinterior trimfjp base + door + window trim1500INTERIOR GENERALflooring 1100 sqft; costco engineered wood $2/ft + install3000INTERIOR GENERALprime and paint intieriorflat white for ceiling + walls // satin white for doors + trim1200KITCHENcabinets Grey Shaker installed4500KITCHENfixturesfaucets / garbage disposer / cabinet handles1500KITCHENcounter topsquartz installed3000KITCHENSS appliance setfridge / dw / mic / oven2800BATHbath 1small full bath (gut and replace)3500LAUNDRYincluded in above flooring/trim/door estimatenot buying washer/dryer0CONTINGENCY FUNDcontingencies (water heater / furnace / electrical / plumbing / anything that goes really wrong)MISC4000TotalTotalTotal44950

I'm just wondering how far you want to scale up and at what point do you want to hire more out and automize. hey william,all good questions. i have not read that book, but i will see if my library has it. i actually do not have a monster day job, just a worker bee engineer without any dreams to climb the corporate ladder.i do not have a rentals limit, i just whatever fits my criteria and my style. by style, i mean, the house needs to have a curb appeal and be in the right area. there are TONS of houses i passed on because they were either "ugly, weird layout, or in an area that wont attract the tenants i target. if i have the money at the moment, if i like the house and if my crew is running low on "projects", i just get it. i have been holding a few houses for the past 8-9 months just vacant in case the market dries up and i need a large project to work on.I have not much work on the houses for awhile. i still help out if i have a few hrs off here and there, but my crew keeps me in check by working only 8-5 and no weekends. so it's easy to just check on the project when they are not there and since they are not there to work, i just leave. i have a good team now, but do not have anyone that can oversee everything like i do. maybe it's because it's all mine and i know it inside/out, but no one will care for it as much as i care and know everything about it. i have spreadsheets that show purchase price, move in, move out, any changes in rent, if they have dogs, what insurance i use, when's the garbage day, what appliances came with which house, water payments for the year, furnace filter size, etc, etc... i update those as the "issues" happen. no one can do a good job unless i pay them a lot of money.my current payroll is ~120k per year, all sustained by the business.i think about quitting my day job often, and i certainly do not need it. but it's easy money, and the biggest fear i have is rentals drying up, like they have been. then what am i going to do?

Markets that have a combination of universities with strong hard science & engineering departments, critical mass of entrepreneurs, and capital sources (i.e., venture capital) are also fertile ground for job growth through formation of new, rapidly growing companies.3.