Moving up to a new home, and turning your old home into a rental can be a great way to get started owning rental properties.  That is exactly how Chris Colgan got his start owning rental properties. Chris thinks that the first purchase anybody should make if they want to own real estate is a primary house.  When you are ready to move out, keep your old house and buy a new house. Chris said that location is an important consideration when buying a property.  His first property is within walking distance to a hospital.  Hospital employees give him a steady stream of potential renters. Chris agreed with Skip and Mary Saylor, on episode 7 of the Rental Income Podcast, that owning a condo is not always the best idea.  The condo fees can be high, but on the upside they are easy to rent out. Best Places to find renters Craigslist MLS Military By Owner Word of Mouth Tenant Screening Check Credit Are they paying utility bills? Reference from previous landlord Budget Make sure you budget to paint between tenants Watch out for little things like getting keys and parking stickers back from tenants Other Advice Check on the property every quarter to twice a year Books Millionaire Real Estate Investor by Gary Keller Rich Dad Poor Dad by Robert Kiyosaki Source to Find Good Contractors AngiesList Contact Chris Colgan ColganRealEstate.com