That's a complicated question. If you're just looking to improve your monthly bottom line, rentals is probably not your best bet. I purchased distressed propert

That's a complicated question. If you're just looking to improve your monthly bottom line, rentals is probably not your best bet. I purchased distressed property in a growth market, buying up places I knew I could go into on weekends and fix up myself. After fixing them up and renting them out, I'd average between $200-$300 a month in profit (per property, after accounting for mortgage, taxes, and property maintenance.) If you work in IT (like I do), that's not exactly life-changing money, and as a function of time-in vs profit out, you'd probably be better off just doing some contract on the side.. at least, in the short term. In the long term, after holding on to a bunch of properties for 13 years, having other people pay my mortgages plus market appreciation, I've generated a ton of equity. Now that I'm cashing out, if you consider my time and my initial investment, I'm doing a great deal better than market. Had I have had the stomach to stay in and pay off those mortgages, I'd probably be doing even better. The price of my sanity, I guess.