[uncle_scott]

There are certainly some deals to be had right now in real estate. Depending on how large of a mortgage you will be carrying on the rental property, you could be looking at breaking even, or cash-flowing the property from day one. I assume this will be your seond mortgage, which will require some sort of healthy down payment...at least 20% or so. If you can get rental income to cover the mortgage while you own the place, then taxes and upkeep will be your only real expenses. I imagine that residential will provide you with a more steady return, but I think it all depends how long you can stay in the game.

My plan is to buy two rental properties in the next year. I will be 20% down into each property, and the monthly rental payment should cover mortgage and taxes. If I keep the properties 10-20 years, then I should make a decent return on investment withen I sell. I don't plan on retiring for at least another 25 years, so this gives me plenty of time for the market to recover before I sell the homes in order to pad my retirement fund.

That is the plan anyway. Everyone is in a different place in their lives, and for me saving the 20% down has been a huge goal that I have been working on continuously. I see there is money to be made, and a chance to have a decent retirement if I play the cards right.