Paul:I just saw your post. hopefully things have improved as Florida has appreciated nicely in most areas.

Part of this is due to putting systems in place and improving tenant screening, but I never would have been forced to do that if I didn't grow.

(See my reply to @Aaron Bassett above.)Building equity can be done from low-cost acquisitions where you can build in the equity through renovations/improvements, or from selecting the right markets and neighborhood/property combinations where growth leads to appreciation.If you want to "keep your day job", then reducing the work and headache on your first few investments might be the best ay to go for you.P.S.

Once you have the tenant sold, you should hire a contractor to do a rough estimate of needed improvements.

@Paul Janerico When Brandon uses the term "forced appreciation" he is talking about a forced increase in value of the property caused by your (the investor) buying at a discount (20% less than the value) and/or adding value to the property through improvements.

Theirs was a bank owned that the previous owner had spent a good deal of money improving with brick & concrete work outside, out door living space, tile flooring throughout, and nice brick fireplace etc.

You should consider this as almost a sales presentation, before and after shots of the house; a list of improvements, if you are going to include the price of improvements don't forget to list everything, materials, labor, cost of money, carrying costs and the cost of sale; some current comps from the area that you based your after repair value on.

Ideally areas the will improve over the next five years.

You will have leasehold improvements that you can depreciate unlike residential tenants.

The only silver lining is that with less home maintenance yo attend to his health is improving - he's 53.