Don't be cheap.

Show me a cheap market with "good" price to rent ratios and mostly renters, and I will show you a neighborhood that is going nowhere fast appreciation wise (or backwards after inflation), where CapEx and inflation will erode away your profits over time, turn overs will be more frequent and more difficult to fill, and the class of tenant will be more management intensive, and if that market is out of state you will be 100% reliant on others to acquire and manage it all for you without ripping you off.

A trailer might be selling for dirt cheap but first check if there is any back lot rent owed.

Sediment can be flushed out.For stuff like this I keep cheap spares on hand - it's oh so easy to find a ~1 year old water heater on craigslist for 50 bucks.

It is free to the landlord and cheap for the tenant.  

@Dennis Cuocci  very true... there is cheap money but not the combination of limited experience and capital and poor credit.. those 3 simply do not go together..

Installing a 80% furnace, natural gas is not doing your tenant an injustice as cheap as natural gas is, especially the smaller the house is.

Some of the older modulars had pretty cheap construction.

If you do this in southern California, and ask 100 HML's, 98 of them will give you the same two names:Dennis Dosswww.dosslaw.comAnthony Geraciwww.geracilawfirm.comSitting with an attorney is not cheap, so it's helpful if you can focus the conversation on the strategy you think you want.You might also consider attending this real estate club, run by lenders that are local to you.Good luck, Lewis.

I'm in C+ type neighborhoods, so I'm targeting those that are "up and coming" rather than just living cheap until they can find something cheaper.