If you want a "true and tested" and somewhat idiot-proof method. 1. Work hard, save money, and purchase your first rental unit in city with solid real-estate g

If you want a "true and tested" and somewhat idiot-proof method. 1. Work hard, save money, and purchase your first rental unit in city with solid real-estate growth market. Find a bank / lender that accepts least amount of down payment. Get tenants ASAP. 2. Leverage that rental unit to buy your second unit. Banks are MUCH more forgiving on down payment, if they have collateral, and know you're generating income. 3. Repeat these steps until you have a nice portfolio of 5-10 units. The real money here is not the income generated from rent, but rather the increase in property value. The more value you have = the more risk banks are willing to take, and lend you more money. Depending on what country you live in, you might have to create a LLC (or equivalent) for each property. This shields you personally from losses, and gaps the properties from each other. Also, depending on country, the lending rules/laws can be more lenient on companies, versus people. Of course, there are more costs involved, there are trade-offs. This is a strategy I've seen pretty much in every city with positive RE growth. People are making money hand over fist, starting from scratch - mainly due to very low lending rates, combined with explosive markets. I know one guy that did just this, while mainly working as a developer. If he sold his portfolio today, he could retire - even though his debt ratio is completely out of whack.