Buy foreclosures. Be Picky. Do the necessary repairs and sprucing up. Rent only to qualified individuals at a reasonable price, including profit, insurance, taxes and an escrow account for improvements. Keep until market cycles and then sell at a profit. Reinvest profits diversely. Capitalism at it's finest. This works like a dream in rural America, but works anywhere if you are choosey. 3 BR/1 Bath 1,300 sq. ft. in clean neighborhood just went for $22,000. $23,000 in improvements increased to 4 BR/2.5 Bath 1,980 sq. ft. Home reappraisal after investment to $97,000. $45,000 total invested and the rental return is $10,500 per year. Not bad! 6 year pay off (self financed). Projected 7 year cycle for sale at approximately $128,000.