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When I turned 24 the wife and I decided to get into the rental bussines. We started out small at first.

I have learned that single family homes as rentals do not make much if any cash flow month to month. They do however create a sizable tax advantage in the form of depriciation. The money to be made on a single family home in in the form of capital appreciation.

Duplexes and other multi family dwellings create largs cash flows and a medium tax advantage. This was great as an offset to my normal wages which allowed a huge reduction in taxes and quite a bit of working capital to fund growth. The capital appreciation is not generally very large. Duplexes do have more maintenance, though not much.

I have had a few rough tennants and a lot of good tennants. It all comes down to screening. An easy way around college kids and the possibility of bad tennants is to put the parents on the lease. Mom and dad will keep them in line or cover the costs. Check your local laws first, though.

I've had a good overall experiance with the rental thing. It has funded most of my education and created sizable growth in my investment portfolio.

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