We buy foreclosed- distressed lower end houses. Then we repair and replace as needed, hiring nearly all the work done. Paint it up, nice yard, make it pretty, and have it in good basic shape. Put it back on the market for sale, and pocket a nice profit.
Our realtor, a family friend, has done this with several homes, and rents them out, says that he does very well with it.Says there are plenty of good renters looking for a home, just have to be picky about choosing the right tenants. Has a management company between him and tenants, so no real hassle to him. He also said if we decided to fix-up and then rent, look at 'Section 8' federal housing, where the Government is responsible for rent check getting to you.I have not investigated that idea.