Single Unit Houses

One way to get a start in the real estate business is through buying and owning a single unit house. The basic idea is to buy low and rent the house out. An important concept in real estate is that money is made "on the buy" This means you can make money by buying real estate at a price that is low. A low price means a price that is low as compared to the current market or to the potential value that the property has. When buying single family houses to rent out  you must become skillful at finding properties that are low priced. You must also become familiar with the rental rates and demand for single family houses in the market area that you are operating in. Almost every neighborhood has a house that needs work and can be purchased at  a bargain price. In 2012 the housing market has a glut of houses that are either in foreclosure or nearing foreclosure. The exact market conditions vary  substantially by states, towns and neighborhoods. This method requires a lot of homework, legwork and telephone calls in order to locate a "good deal". It is important to specialize in a market area so you can learn that market. You can become familiar with house prices, demand for rental houses and rental rates by zeroing in on a specific area.

It is possible to purchase a house with little money down. Even if the seller is selling the house without receiving a down payment, the purchase will still require funds to pay for an attorney , title insurance, property insurance etc.
There are a lot more details to this business including:

•  property inspections
•  budgeting for repairs and renovations
•  financing
• insurance
•  marketing to tenants and tenant selection
•  legal concepts
•  bureaucratic - government issues
•  ongoing property management  

Before purchasing any house, you must perform a detailed financial analysis that includes  all costs of operation, rental market rates and demand for houses and legal issues related to leasing and renting houses in the market area. The current condition of the house must be analyzed in detail. The costs of making required repairs must be identified.

If you decide to buy and rent single family houses you will begin to learn about buying, analyzing  and managing real estate in general. The lessons learned while buying one or more single family houses will help you buy larger properties and can form the foundation of a career in investing in real estate.