For example, many investors that I meet from California who want to build cash flow and get the tax benefits of owning rental properties just can't make the deals work there because a small peice of crap house is 200k or more and the rents they can get for the houses just don't cover there payments.



It is like that in alot of state in this country but not everywhere, there still areas in other states that was not affected as hard as these areas that had high appreciation rates. So my tip to them is don't give up just go hunting in another market.

Yes, most of the the country has seen some kind of affect by the recent credit crunch but there are many areas that never saw the crazy price appreciation of 50% a year or more. There are many states that just saw a steady rate of 3 to 5 percent. So when the bubble burst the drop was not near as drastic as these high appreciation areas.

Here is a plan if you still want to build a rental portfolio.

Hunt for states that were not affected by the real estate bubble on the upside. They will not have been hit as hard when everything went down. They are the states and areas that just saw moderate appreciation when everything was going strong.

Once you have found the area, find the local wholesaler there. Don't waste time trying to find the deals youself. Look for the wholesaler there that is selling huge volume like 8 to 10 properties a month. That person is makeing money off of voulume and you will only save a few grand by doing it yourself. Overall for the time that you save by paying him or her there small mark up it is well worth it.

When hunt down the major wholesaler in the area he will know all the right people you will need in order to take a deal from purchase to a tenant in place. They will do all the work for you and without you there.

Due your due diligence on the people you meet and make sure they are legit. Once you know then start buying and building you rentals. It is pretty simple to do.

There are alot of investors who have changed there lives because they had enough guts to step out of the norm and go to other markets and invest in other states. Don't let anything or any one stop you in your quest to build a better life.

The goal is to find a honest team and let them help you find great rental properties. As you purchase properties you will start building momentum and soon forget about all the troubles you were having in your market.

Don't be like everyone else sitting on there butts not investing because it won't work in your immediate market. Others are succussful doing it and you can to.

Be willing to take a little calculated rish and think like others will not allow themselves to think and you will be rewarded.