Talk to your mortgage broker though.Having an extra unit will definitely help with the mortgage, but like you said, you have to consider what's available in the area you really want to live.

@George Paiva I definitely do extra screening and checks on the tenants and try to keep the properties priced in the range that will attract the right tenants.

YouTube and Google are your best friends when you get stuck.Painting and clean up are the easiest, followed by drywall and tiling (drywall requires a lot of patience due to having to use multiple coats of mud), and then comes plumbing and electrical.Get the right tools for the job - a good cordless drill and saw, trowels, paint brushes, etc. the extra few dollars will save you a lot in trips to the store and lost time.

There are some investors who thrive in tougher to war zone type areas for extra yield but they work very hard for it and have a ton of risk so I find it is not for a majority of investors.

@Stan Butler , I would go with the 2nd option, having the rent be due on the 20th, but I would not charge them any extra for that (not a good strategy in sluggish economy).

Major state battle over what to do with all of our extra money!

It adds an extra degree of disclosure when an agent approaches an owner "as an agent" supposedly to list the property(which would serve the owner's best interest), then turns into investor which may serve the investor/agent's best interest, at the expense of the owner.

The second level is supply and demand: How many units exist, what is the trend of vacancy, what is the trend in concessions, how many are being built, how many are in the planning pipeline, how many new jobs does it take to absorb a new apartment unit, how available is land for new apartments, how difficult is it to entitle, permit and build in the jurisdiction.

Main level - enclosed porch, living room, dining room, bathroom, and kitchen2nd level - 3 bedrooms, bathroom,Attic - sitting area, un-permitted kitchen, 2 bedrooms, office, and un-permitted bathroom. and lots of storage (I will take out the kitchen and bathroom and cap everything so it is compliant)basement - new gas boiler, and water heater, unfinished but +9' ceiling height.

They'd also let me show it before they moved out so I could possibly limit that turnover expense.I figured my upside there was an extra month plus I was getting someone that could move in immediately and that had near perfect application (his credit score was higher than mine :-)).