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I have 11 rented properties, another in development. I buy townhouses at auction. Use my familiar contractors to get them to code. I then rent through a local estate agent (realtor) who handles everything : find the tennants, doing credit checks, and responding to any needs the tennants might have (they want a window fixing, etc). I rent to professionals, no children, no pets, no smoking. I'm fully insured.
It has now become an easy routine. Find a good deal at auction. Contact my foreman. 1 month to 4 months later, present my realtor with the property.
You can make good money from students (i have friends who do this) because you can charge on a per room basis. You basically buy a large townhouse (6 or more bedrooms), get it up to code with the basics, then hand details over to local college / university. They will usually be able to fill it for you for 40 or more weeks a year. You earn more on a per room basis.
Where I live property is very expensive. A basic 1 room aprtment is £150K ($300K). But I ALWAYS get under 50% of market value at auction; its my criteria for a good deal. Despite market fluctuations you know you have good captial appreciation and a steady, risk free income.
My advice : talk to someone in person who does this. And, best advice I can give, ALWAYS stick to your budget when developing properties. Develop for the market, NOT for you. Remember not to develop a prop that you would like to live in; develop one that your intended tennants would like.
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