You need to do a lot of research and learning before you just go buy a property. This isn't a hobby, it's a business even if you're only buying one. You need to know the laws. Did you know it's illegal to ask a perspective tenant if they have kids? You need to assemble a good team(accountant, lawyer, contractor, etc) unless you think you know what you're doing which you likely don't. When investing in real estate, you make your money when you buy. You realize it when you sell. If you don't know what that means, go read up on it. Or ask specific question. We'll answer, but know you won't get enough info no matter how much you ask because you don't know what you don't know and hence don't know what to ask.
Once you get some more knowledge, then you can start looking for a property. Know that real estate is local. Strategies that work in one area won't be feasible in another. For example, in some of the "booming" cities, you can list a property for sale and it will for for 20% or more OVER list price. In those places, prices for housing is crazy and in 5 years a property might be worth $100k more than you paid for it. In those areas, the strategy might be for capital appreciation over cash flow. In my area, that would never work. We see 1% inflation. So in my area it's all about cash flow and how much income the property generates. Just as a hint to the above, I buy at 70% of market price or better(for me). So many properties that are listed are just not good buys for me. As an example, I just purchased(closed Aug 25) a 3BR/2BA ranch with a finished basement
http://forum.mrmoneymustache.com/real-estate-and-landlording/my-first-auction/. It cost me 79k after all costs. Add another $10k for repairs bringing my cost to $89k. The property value is $130-135k. I'm going to be renting it out for $1400/month starting 11/1.
Know that Zillow is fairly good on average, but on a particular property can be off by 30%. Comparables are much better indication of value.
Here's a good place to start:
https://www.biggerpockets.com/real-estate-investing/education. There are lots of good links just in that article. Spend 50 hours reading, just to start. Ask yourself, would you mind being called at 3am in the morning because a toilet is clogged? Are you handy at all? Do you know how to:
- replace a light bulb?
- Stop a toilet from running constantly?
- Paint a wall(most people think they can paint and most people are wrong)?
- Change a faucet?
- Repair drywall?
- unclog a sink?
Each are easy enough to learn, but if you don't know how and it becomes an emergency, you're paying roto rooter $300 for something that would cost you $25 to do yourself.
Feel free to keep asking, i'm just trying to convey that it isn't something you just wake up and decide you want to do. Do it intentionally. Good luck.
Brian