Location, location,location. When I bought my tiny house in a good school district in 1996, I could buy a much bigger home in another so-so area with the same money. My tiny house was in very bad shape--an estate sale from a 82-year old man who died not inside the house, but in front of the door steps of his neighbor. Anyway, I had to paint 8 coats of paint on the black walls. I had to re-do electricity, water pipe, bathroom (the tiles were falling down), wood floor--you name it. But it has proven to be the best investment I have made. Because of its location, I have no problem renting it. I said picking tenants is very important. But only your rental in a good location can attract good tenants. My current tenant,a SF attorney, has lived there for 4 years and I have never heard from her. All I do every month is to cash the rent check, which is never late. So, either buying for your own living or investment, remember location is everything. A rotten house can be fixed, but location cannot.