Most states, and some towns/cities, have specific laws surrounding this rental method.  

Some things to consider are job growth, population growth, and surrounding school systems.

There is tons of ethics Conflicts in this business surrounding repairs.

There are some great people that I've met over the past 15+ years of note buying and 33+ years of lending, but please be sure...whether you do it yourself or hire a manager/fund to handle your investment...make darn sure the managers or servicers you surround yourself with actually know what the heck they're talking about. 

.:  If I were in Detroit starting out I would be buying $10,000 homes, fixing them to rental conditions, lease up and sell turnkey to investors on the coasts for $75-100k.Melanie, there is a big difference between the city of Detroit proper and some of the surrounding suburbs. 

My question surrounding cash flow; yes, probably using the 5% down product and paying PMI/MIP, it would be almost impossible to cashflow.

Surrounded by mountains in a valley that naturally constricts growth there will continue to be a shortage of housing.

Zoning change just happened to me by the city (Midwest) and a few surrounding homes from residential.  

This property is surrounded by townhomes, apartments, and businesses.

This is also a location where you never feel rich because you are surrounded by affluence.