I guess I have two conflicting opinions on what is happening in this industry:First, having worked with many small business owners over the years, it's my opinion that the vast majority of the small businesses that fail, do so because of a lack of business/marketing planning.

Another book I would recommend is Building Wealth One House at a Time by John Schuab.Both books can easily be found on Amazon and likely major bookstores.

Seems as thought the vast majority of foreclosures relate to SFHs.Thanks!

major renovation Good condition?

Putting $40K into it is a major commitment and likely a sign that this is not a great deal (repairs are high relative to the purchase price).

I would really not like chasing a specific deal for 4 months and then get a major surprise at the closing table.Greg

At the same time read up on all the other major forms of investing in RE so you understand the broader market.

Don't forget the exterior- a nice fresh coat with contrasting trim ALWAYS helps curb appeal.Lastly, keep in mind when doing all of these things that IF there is a major issue with plumbing or wiring, or termites, or ?

Call the planning department for the city where its located.

Or would the number of rentals in a major downturn be greater than the demand, causing rental prices to drop thus potentially causing many properties to go into negative cash flow?